Global Bond Yields Rise Amid稳态 Market Conditions

Global bond markets experienced mild pressure on Tuesday, with 10-year government yield benchmarks rising in the U.S., Germany, and the U.K. The U.S. 10-year Treasury yield climbed to 4.62%, up 8 basis points from the previous session, while Germany’s 10-year Bund yield reached 2.47%, a 7-basis-point increase. The U.K.’s 10-year gilt yield rose to 4.31%, marking its highest level since mid-2023. These movements followed a stronger-than-expected U.S. December inflation report, which reinforced expectations of prolonged higher interest rates. Equity markets remained resilient, with the S&P 500 closing flat at 5,317.42, while the FTSE 100 edged up 0.2% to 8,142.63. The Japanese Nikkei 225 gained 0.6% to 38,751.17, supported by a weaker yen and strong export data. The British pound strengthened slightly against the dollar, trading at $1.2734, up 0.3% on the day, reflecting renewed investor confidence in U.K. economic resilience. Market participants are closely watching upcoming data, including U.S. jobless claims and the ISM manufacturing index, expected later this week. The divergence in bond yields signals growing concerns over central bank policy divergence, particularly between the Federal Reserve and the European Central Bank, which has maintained a hawkish stance despite slowing growth. The euro weakened to $1.0821, down 0.4% against the dollar, while the Australian dollar slipped to $0.6487 amid rising commodity price volatility. Despite bond volatility, broad-based market stability suggests that risk appetite remains intact, though with a growing preference for shorter-duration fixed income assets.