Global Bond Yields Surge as Robust US Economic Data Dampens Safe-Haven Demand

US government bonds experienced a decline during the initial trading session of 2026, as the return on 30-year debt reached its peak level since early September due to strengthening economic prospects reducing the appeal of safety-oriented investments. Interest rates for 30-year obligations advanced by four basis points to hit 4.88%, while 10-year benchmarks rose two basis points to 4.19%. These market shifts followed reports indicating that domestic jobless claims dropped last week to one of the most robust levels observed this year. Eugene Leow, a specialist at DBS Bank Ltd., suggested that the upward movement in long-term yields likely mirrors growing confidence in the American economy, a sentiment currently reflected across global equity markets.

Concurrently, Australian sovereign debt weakened, with three-year and 10-year yields climbing roughly nine basis points on expectations that surging raw material costs would accelerate national economic expansion. The Australian currency appreciated by 0.5% against the US dollar, leading gains among major developed-market currencies. Homin Lee of Lombard Odier noted that the local currency and rate fluctuations partly stem from defensive investor strategies prior to the anticipated release of strong US employment data for December. He further attributed the current market momentum to an expanding optimism surrounding the international metals industry. Additionally, long-dated sovereign bonds from Germany and France also faced selling pressure as European markets opened for the new year.