Global bond sell-off spikes as US-Iran tensions push oil prices higher

US President Donald Trump announced that nearly a dozen drug makers have agreed to match US medication prices to those abroad. Meanwhile, renewed US-Iran strikes triggered a global bond sell-off, driving borrowing costs up. The 30‑year UK government bond yield hit its highest since 1998, Japan’s 10‑year yield touched 3%—a 30‑year high—and the US 30‑year Treasury yield stood at 5.27%, close to 2007 levels. Oil jumped: Brent crude rose 1.8% to $92.09/barrel, WTI up 2.4% to $87.79. Eurozone inflation reached a three‑year high of 3.3% in August, fueling expectations of further rate hikes.

For Nigeria, higher oil prices could boost export earnings and government revenue, but rising global yields may increase the cost of external borrowing and put pressure on the naira. Investors should watch how these shifts affect foreign exchange reserves and budget assumptions, while policymakers may need to adjust debt‑management strategies amid tighter global financing conditions.

Will Nigeria’s oil‑gain outweigh the higher borrowing costs, or will authorities seek alternative funding sources to shield the economy from external shocks?

SOURCE: https://www.channelstv.com/2026/09/01/global-bond-sell-off-deepens-on-inflation-concerns/