--- title: "Global Bond Yields Jump As US Two-Year Hits 3.83% Amid Iran Tensions" type: "News" locale: "en" url: "https://longbridge.com/en/news/284042240.md" description: "Global bond yields are rising sharply due to escalating tensions between the US and Iran, with US two-year Treasury yields reaching 3.83% and UK yields at 4.42%. This shift is linked to increased energy market pressures, raising inflation concerns. Traders are adjusting rate expectations, with anticipated increases from the European Central Bank and Bank of England. Investors are becoming cautious, with some reducing exposure to rates and credit. Analysts suggest that even if tensions ease, the market may not revert to previous expectations of multiple rate cuts, especially with upcoming central bank decisions." datetime: "2026-04-24T17:58:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284042240.md) - [en](https://longbridge.com/en/news/284042240.md) - [zh-HK](https://longbridge.com/zh-HK/news/284042240.md) --- # Global Bond Yields Jump As US Two-Year Hits 3.83% Amid Iran Tensions Global bond markets are moving sharply in a different direction, and investors are starting to take notice. What had looked like a more stable rates backdrop is now shifting, as a deepening stalemate between the US and Iran pushes yields higher across major economies. Two-year US Treasury yields have climbed 12 basis points since Monday to 3.83%, while UK two-year yields have surged 30 basis points to 4.42%, marking the largest weekly increases in a month. The move appears tied to renewed pressure in energy markets, with Brent crude on track for its biggest weekly gain since the early phase of the conflict, raising concerns that inflation could stay elevated longer than previously expected. That shift is feeding directly into rate expectations. Traders who had recently questioned whether central banks would follow through on aggressive tightening are now repositioning, with pricing for the European Central Bank rising to 67 basis points of increases this year from 50 basis points, while expectations for the Bank of England have climbed to 63 basis points from 30 basis points earlier in the week. In the US, swaps markets are now signaling the Federal Reserve is likely to hold policy steady through year-end, a notable change from earlier in the week when there was a roughly 50% chance of a quarter-point cut. Stronger data in both the US and UK, alongside geopolitical uncertainty, is reinforcing a more cautious stance toward rate cuts. Investors are adjusting accordingly. Ariel Bezalel at Jupiter Asset Management said he is taking profits and reducing exposure to both rates and credit, while holding more cash as a buffer against potential volatility, noting concerns that the sharp bond-market swings seen in March could return. At the same time, BlackRock's Wei Li highlighted that policymakers are facing a challenging environment, as inflation pressures were already elevated before the conflict began. Even in a scenario where tensions ease, she suggested markets may not return to the earlier backdrop where multiple rate cuts were expected, particularly with a heavy slate of central bank decisions approaching next week across the US, Europe, Japan, the UK, and Canada. ### Related Stocks - [UTWO.US](https://longbridge.com/en/quote/UTWO.US.md) - [GOVT.US](https://longbridge.com/en/quote/GOVT.US.md) - [SHV.US](https://longbridge.com/en/quote/SHV.US.md) - [IEF.US](https://longbridge.com/en/quote/IEF.US.md) - [XTWO.US](https://longbridge.com/en/quote/XTWO.US.md) - [JUP.UK](https://longbridge.com/en/quote/JUP.UK.md) - [BLK.US](https://longbridge.com/en/quote/BLK.US.md) - [BTX.US](https://longbridge.com/en/quote/BTX.US.md) - [BIT.RT*.US](https://longbridge.com/en/quote/BIT.RT*.US.md) - [BDJ.US](https://longbridge.com/en/quote/BDJ.US.md) - [BSTZ.US](https://longbridge.com/en/quote/BSTZ.US.md) - [BIT.RT.US](https://longbridge.com/en/quote/BIT.RT.US.md) ## Related News & Research - [This chart shows why AI will eventually mean lower bond yields](https://longbridge.com/en/news/286774916.md) - [TREASURIES-Yields on longer-dated bonds hit year-plus highs overnight](https://longbridge.com/en/news/286778191.md) - [Stocks Mixed as Crude Oil Prices and Bond Yields Fall](https://longbridge.com/en/news/286785122.md) - [Rising Bond Yields Weigh on Stocks](https://longbridge.com/en/news/286939009.md) - [Global Inflation Fears Are Driving Bond Yields Higher. Make This 1 Trade Now.](https://longbridge.com/en/news/286932294.md)