Global bond yields hit multi-decade highs amid inflation fears, AI debt expansion

Global bond yields have surged to their highest levels in decades, driven by growing government deficits, inflation fears linked to Middle East conflicts, and tech giants issuing significant debt to fund AI expansion. According to Reuters correspondent Gregor Stuart Hunter, these factors are causing bond yields in major economies, including the U.S., Japan, Germany, France, and the UK, to reach new heights. The U.S. 30-year Treasury yield has climbed above 5% for the first time since 2007, while Japan’s 10-year JGB yield is near a three-decade peak at approximately 2.95%. This shift reflects increased borrowing costs and supply pressures in the credit markets. The impact of these developments is evident in prediction markets, particularly concerning gold prices. Rising inflation fears and geopolitical uncertainties typically lead investors to seek gold as a safe haven asset. Markets appear to interpret the current bond yield environment as supportive of scenarios where gold prices could increase. The market for gold price predictions in August 2026 shows mixed sentiment, with varying probabilities for reaching different price points. Key Takeaways Global bond yields are at multi-de...