Global bond markets have experienced sharp volatility this year, with rapid rises and falls. Although movements appeared calmer this week, long-term bond yields reached notable levels, with Japanese bond yields hitting a record high, US 30-year bond yields returning to 5%, and many European bond yields rising to their highest levels in decades.

Economists believe these developments reflect shaken investor confidence in central banks’ ability and willingness to control inflation over the medium term, according to a report published by CNBC and reviewed by Al Arabiya Business.

Long-term borrowing costs worldwide have come under pressure again, which analysts attribute to widespread investor concerns about the trajectory of fiscal and monetary policies in major economies.

In the United States, the 30-year Treasury yield rose above 5% this morning for the first time since July, amid questions about the future of tariff revenue following a recent court ruling. In Japan, the 30-year bond yield jumped to a record level driven by rising inflation, weak real interest rates, and political uncertainty.

In the UK, the 30-year bond yield reached its highest level since 1998 ahead of the anticipated budget announcement, while the French 30-year bond yield broke levels not seen since 2008 amid a political crisis threatening plans to reduce the fiscal deficit. German long-term bond yields also rose to their highest level in 14 years.