Global Bonds Face September Losses as Equities Resist Higher Yields

Singapore, 30 September 2026 – Global bond markets headed toward a difficult month as sovereign borrowing costs rose, even while Asian equities showed relative resilience. In Asian trading on Wednesday, the benchmark 10-year US Treasury yield was around 5.2383%, close to its highest level since 2007 and almost 50 basis points higher for September. Because bond prices fall when yields rise, that move implies material mark-to-market pressure for holders of longer-duration government debt.

The two-year US yield was about 4.8889%, lower on the day after a senior Federal Reserve official pushed back against expectations of near-term tightening, yet still more than 50 basis points higher over the month. The pattern points to more than a simple reassessment of the next policy meeting. Investors are weighing fiscal supply, persistent inflation and energy costs alongside interest-rate expectations. The causes interact, and no single factor fully explains every market move.