High sovereign bond yields fuel equity unease as oil, hawkish Fed pressure Treasurys

Multi-decade-high sovereign yields are making equity investors uncomfortable, says Swissquote's Ipek Ozkardeskaya, warning that appealing yields could encourage outflows from equities into safer bonds. U.S. Treasury yields rose Monday with the 10-year at 5.208%, pressured by higher oil prices and stalled U.S.-Iran peace talks. Citi says no obvious catalyst for a large rally exists unless oil prices fall. J.P. Morgan recommends neutral on German duration near-term. The RBA and RBNZ are expected to hike rates this week and in Q4. BOJ rate hike timing brought forward to December 2026 and April 2027.