September 2026 – Rising bond yields weigh on markets

The global financial markets struggled in September. With little progress in the U.S.-Iran negotiations, energy prices rose, reviving concerns about inflation. In addition, a number of central banks, including the U.S. Federal Reserve, the European Central Bank and the Bank of Japan, raised their key rates during the month. In this climate, most stock markets were down in local currencies. 

Amid the prospect of higher interest rates, bond prices recorded their steepest monthly decline in years. In the United States, the 10-year Treasury yield crossed the 5.0% threshold, raising borrowing costs for households and businesses. In U.S. dollars, the price of WTI oil was up 5.4% on the month, while gold was down 6.3%.