Chart of the Week: Sovereign Sell-Off
Global bond yields have surged across the world, as the AI capex boom and rising fiscal spending fuel greater demand for capital while the ongoing energy supply disruption is reigniting concerns about inflation. The average of US, German, UK and Japanese sovereign yields has risen across maturities, led by the long end, with 30-year yields at or near cycle highs. While front-end yields may fall as near-term inflationary pressures subside, long-end yields are likely to remain elevated, with fiscal concerns and inflation uncertainty driving a structural repricing of term premia.
Source: Bloomberg and GS Asset Management. As of September 2, 2026. Chart shows the average of US, German, UK, and Japanese sovereign yields for the 2y, 5y, 10y and 30y. Past performance does not guarantee future results, which may vary. 'We' refers to Goldman Sachs Asset Management. For Illustrative Purposes Only.
Download the full document, which includes the chart of the week and insights on market developments. On pages 3 and 4, we further recap equity sector, size and style returns, global index returns, as well as rates and spread movements and a monthly snapshot of global equity valuations.
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