economyWednesday, September 2, 20262 sources

Global bond sell-off intensifies as US-Iran tensions stoke inflation fears, UK borrowing costs surge

Global bond markets experienced a sharp sell-off, pushing UK borrowing costs to their highest level since mid-2008. The event intensified fears of inflation and geopolitical instability, with the US and Iran at the center of the turmoil. The UK’s John Healey faces heightened challenges as he prepares his first budget.

The global bond sell-off resumed on September 2, 2026, with the yield on 10-year UK government bonds (gilts) rising to just below 5.3%, the highest since mid-2008. This surge in yields reflects growing concerns over inflation and geopolitical risks, particularly linked to US-Iran tensions. The Guardian attributes the selloff to these tensions and inflation fears, while the Jakarta Post highlights inflation risks and rising oil prices as key drivers.

Where Sources Diverge

Jakarta Post mentions inflation risks and oil prices as factors, while The Guardian attributes the bond sell-off to US-Iran tensions and inflation fears.

jakarta-post

Bond selloff deepens as inflation risks, oil prices jolt markets

guardian

Global bond sell-off intensifies as US-Iran tensions stoke inflation fears

Timelines

Sources

IndependentThe GuardianSep 2, 12:54 PM
Global bond sell-off intensifies as US-Iran tensions stoke inflation fears

UK borrowing costs driven up, adding to challenges facing John Healey as he prepares for first budget Business live – latest updates The global government bond sell-off resumed on Wednesday, driving up the UK’s borrowing costs and exacerbating the challenges facing John Healey as he prepares his first budget. The yield – effectively the interest rate – on 10-year UK government bonds, or gilts, jumped to just below 5.3% in early trading: its highest level since mid-2008. Continue reading...

IndependentJakarta PostSep 2, 09:41 AM
Bond selloff deepens as inflation risks, oil prices jolt markets - The Jakarta Post

Bond selloff deepens as inflation risks, oil prices jolt markets  The Jakarta Post