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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, August 27, 2025 — Long-term government bond yields in major advanced economies including the United States, Japan, and Europe have risen sharply, driven by renewed inflation concerns and waning confidence in fiscal discipline and policy consistency.
According to Investing.com, as of August 26, the yield on the U.S. 30-year Treasury stood at 4.908%. While the rate had eased to 4.769% on August 5 after reaching a yearly high of 5.018% on July 15, it has since resumed an upward trend. This contrasts with short-term Treasury yields, which have edged lower in line with the Federal Reserve’s rate-cutting cycle that began last year.
Japan’s 30-year government bond yield also remains near historic highs, closing at 3.200% on August 26 after hitting a record 3.216% on August 25.
Analysts attribute the spike in long-term yields to growing uncertainty as economic policy becomes increasingly subject to political influence. In the U.S., Treasury yields rose steeply after President Donald Trump announced on August 25 his decision to dismiss Federal Reserve Governor Lisa Cook. Investors, fearing an erosion of Fed independence, sold off long-term Treasuries. Market participants warn that if monetary policy becomes subordinated to political pressures, the predictability of Fed actions could decline, and Trump’s pro-rate-cut stance could reignite inflationary risks.
In Japan, concerns have mounted following the ruling Liberal Democratic Party’s defeat in recent elections, raising doubts over the sustainability of expansionary fiscal policies pursued by the party’s government, the Yomiuri Shimbun reported.
A similar trend is visible in Europe. In France, the 30-year government bond yield rose 1.7 basis points to 4.398% on August 26, marking the highest level since November 2011. The increase reflects investor unease amid the government’s fiscal consolidation efforts and opposition lawmakers’ moves to push for a no-confidence vote.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
