U.S. and European bond yields climbed over the past two days, with the 10-year U.S. Treasury hitting its highest level since January 2025 as rising oil prices and expectations of further Fed rate hikes weighed on sentiment.
Data showed the U.S. 10-year Treasury yield rose 3.9 basis points to close at 4.756 percent on Monday, its highest level since January 15, 2025. The 10-year Treasury yield typically serves as a key benchmark for U.S. mortgage rates, auto loans, and credit card debt.
By 18:00 Beijing time on Tuesday, the 10-year Treasury yield had risen to 4.788 percent, while the 30-year yield reached 5.278 percent.
Last week, U.S. Federal Reserve Chairman Kevin Warsh sent hawkish signals at the Jackson Hole Economic Policy Symposium. Markets interpreted this as a sign that the Fed would need to tighten policy further if inflation does not cool fast enough. Combined with rising oil prices on Monday, this intensified concerns over high inflation, triggering a sell-off in Treasuries that pushed prices down and yields higher.
Additionally, bond yields in several European countries have also been on the rise.
On Tuesday, Germany's 10-year yield climbed to 3.34 percent, its highest in 15 years. France's 10-year and 30-year yields rose to 4.19 percent and 4.96 percent, respectively, both at levels not seen since 2008. The UK's 30-year yield surged to 5.871 percent, marking its highest level since 1998.
Analysts say the U.S.-Iran conflict has pushed up global energy costs and intensified inflationary pressures, fueling market expectations of further rate hikes by major central banks.
At the same time, large technology firms are issuing significant amounts of debt to fund the AI boom, adding to supply pressures in the bond market and driving up government borrowing costs.
US, European bond yields hit multi-year highs on Fed signals, oil surge
Chinese President Xi Jinping's key speech at the 2026 Shanghai Cooperation Organization (SCO) Summit in Bishkek, Kyrgyzstan has resonated with international observers, who say his vision of global governance can help steer international relations on the right track at a time fraught with geopolitical challenges and economic uncertainties.
The two-day summit wrapped up in the Kyrgyz capital on Tuesday after bringing together leaders from more than 20 countries and other international organizations, and came as this year significantly marked the milestone 25th anniversary of the SCO's founding.
Since its establishment in 2001, the organization has grown from its original core membership comprising China, Russia and four Central Asian countries, to now include 10 member states, two observer countries, and 15 dialogue partners.
During the 26th Meeting of the Council of Heads of State of the Shanghai Cooperation Organization (SCO) and the "SCO Plus" meeting on Tuesday, President Xi put forward a four-point proposal, calling on the SCO to stay committed to putting development and people first, taking security as a key goal, and promoting dialogue and consultation.
International analysts and political figures gave their assessment of China's pivotal role within the bloc.
"China plays a pivotal role in the SCO and its significance keeps growing amid ongoing geopolitical tensions and global economic instability," said Amangeldy Tazhenov, Deputy Chairman of the Board of the Foreign Policy Research Institute under the Ministry of Foreign Affairs of the Republic of Kazakhstan.
Meanwhile, others highlighted the importance of the Global Governance Initiative, which was first put forward by President Xi at the SCO Summit in north China's Tianjin last year and which seeks to build a more just and equitable multilateral world order.
"The Global Governance Initiative proposed by the Chinese President is of great significance. International relations are currently mired in a deep crisis and this initiative represents a potent attempt to resolve it. First, the initiative aims to further unite the vast number of developing countries and promote the establishment of a new world order based on fairness and justice that accommodates the interests of all parties. Therefore, the global governance initiative proposed by the Chinese President is timely, holds broad prospects, and can provide strong support for steering international relations toward positive development," said Sergei Rachkov, Chairman of the Standing Commission on International Affairs of the House of Representatives of Belarus.
International observers also stated that by actively advocating multilateral cooperation, China has promoted dialogue and consensus-building among nations, thereby injecting more positive energy into a currently turbulent world.
"President Xi Jinping's initiatives of the Global Development Initiative, the Global Security Initiative and also the Global Governance Initiative, strongly relate to the mandate and the values of the Shanghai security cooperation organization [the SCO]," said Sizo Nkala, a research fellow of Center for Africa-China Studies under University of Johannesburg.
Given the expanding influence of the SCO, many observers worldwide say they were keeping a keen eye on proceedings in Bishkek, which also saw United Nations Secretary-General Antonio Guterres in attendance.
"We look forward to positive outcomes from the SCO summit and continued progress in advancing China's Global Governance Initiative. Upholding openness and inclusiveness, the initiative emphasizes the practice of genuine multilateralism, and safeguards the authority and status of the United Nations," said Janusz Piechocinski, former deputy prime minister of Poland.
Xi's vision of global governance can steer int'l relations in right direction: experts
