Global government bond yields have surged this week, reflecting investor anxiety that inflation could remain structurally higher due to rising debt, tariffs, defense spending, and energy shocks. The U.S. 10-year Treasury yield climbed to its highest level since November 2023, while Japan's 10-year government bond yield moved above 3% for the first time since 1996. Additionally, the U.K. 10-year Gilt yield hit a post-2008 high, and German 10-year bund yields rose to levels not seen since 2011. This sell-off also comes as market odds for a 25-basis-point rate hike at the September Federal Open Market Committee meeting rose to over 66% following Federal Reserve Chairman Kevin Warsh's speech on August 28.