What’s driving the rise in global bond yields?

Global bond yields are rising because financing needs, energy-driven inflation risks and divergent monetary-policy signals are combining to pressure rates higher.

• The U.S. August employment report showed 162,000 jobs added, while the labor market remained resilient and hiring became more balanced across sectors.
• The U.S. 10-year Treasury yield rose roughly 30 basis points in the third quarter as AI infrastructure investment and government budget deficits increased the supply of debt investors must absorb.
• West Texas Intermediate crude traded above $90 per barrel, about 30% above its June lows, increasing the risk that energy prices will feed inflation.
• Mixed Federal Reserve signals are sustaining volatility: Chair Kevin Warsh sounded hawkish at Jackson Hole, while Governor Christopher Waller appeared to favor keeping rates unchanged in September.
• Canada held its policy rate at 2.25% despite headline inflation near 3%, and Canadian yields rose about 10 basis points; in Japan, markets expect at least a 25-basis-point hike and the yen strengthened toward 155 per U.S. dollar.

Takeaway: The yield increase reflects a combination of inflation, debt-supply and policy risks rather than a single Fed signal; despite hawkish rhetoric, weaker growth and contained core inflation still support Canadian government bonds, while Japan and the U.S. face greater tightening uncertainty.