Global government bond yields generally rise, putting pressure on precious metals and causing a pullback

(1) Due to rising energy prices, heightened inflation expectations, and changes in monetary policy outlook among major central banks, yields on key global government bonds have generally climbed. The yield on Japan’s 30-year government bond surged above 4.18%, reaching a historic high, the UK’s 30-year yield rose to 5.88%, marking its highest level since 1998, Germany’s 10-year yield climbed to 3.339%, the highest since 2011, and the US 30-year yield reached 5.28%, up 4 basis points on the day. (2) Influenced by a stronger US dollar and shifting interest rate expectations, international precious metal prices declined. Spot silver fell below $65 per ounce, down 2.33% on the day for its lowest since August 19; spot gold dropped 1.66% to $4375.23 per ounce. Brent crude oil futures expanded their gains by 2%, closing at $92.30 per barrel. (3) As the market re-evaluated the future monetary policy paths of major central banks, the US Federal Reserve’s hawkish comments combined with rising energy prices led to a clear cooling of September rate cut expectations, with the probability of a rate hike rising to about 66%. Risk assets came under pressure, with major stock indices in the UK, France, Germany, and Nasdaq 100 futures mostly falling. US employment and inflation data released this week will be key in determining the Federal Reserve’s policy trajectory.