Bond tremors from Washington to London to Tokyo upend Asia
Global bond markets are experiencing significant turmoil, affecting borrowing costs in major cities like Washington, London, and Tokyo. Investors are adjusting their strategies as yields rise to multi-year highs, particularly in Japan where the 30-year government bond yield has reached its highest level since 1999. The situation is exacerbated by political and fiscal uncertainties, especially in the UK, raising concerns about potential economic repercussions.
- ▪Bond markets worldwide are facing upheaval due to geopolitical and economic factors.
- ▪Japanese government bond yields have surged to their highest since 1999, raising concerns about the country's economic stability.
- ▪The UK is experiencing political turmoil that is impacting fiscal policies and increasing gilt yields.
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TOKYO — Bond markets are cracking around the globe as geopolitical, technological and demographic trends simultaneously upend everything investors thought they knew about 2026. The turmoil is propelling borrowing costs to multi-year highs from Washington to London to Tokyo. It’s altering the economic and political calculus in real time. And debt yields, it seems clear, will remain elevated everywhere all at once. “Rates will stay higher for longer and investors should plan accordingly,” warns Apollo Management economist Torsten Slok. Nowhere is that truer than here in Japan. The global bond sell‑off is putting Tokyo in an uncomfortable spotlight – raising the specter of a dreaded economic refrain, “This time is different,” becoming reality.
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