Navigated Menu Back Financial Times Financial Times UK 2 Oct 2026 Buttons.Search Options Global bond sell-off leaves US trapped in ‘vicious loop’ ▸ Treasury yield hits highest since 2002 ▸ Gulf war drives up borrowing costs EMILY HERBERT AND IAN SMITH — LONDON WILLIAM SANDLUND — HONG KONG LEO LEWIS — TOKYO Settings Print Share Listen Borrowing costs across the US and Europe surged yesterday as pressure from the Iran war’s energy shock on public finances intensified around the world. Yields on 10-year Treasuries climbed as much as 0.05 percentage points to 5.34 per cent, a level last seen almost a quarter of a century ago. Bond yields rise as prices fall. Traders warned that the $32tn US government bond market, an anchor for global finance, was caught in a “vicious loop” of selling. The bonds later rallied to 5.24 per cent, down 0.05 percentage points on the day. Selling in the US spread across the Atlantic, with the yield of the UK’s 30year gilt climbing ...