Government Bond Yields Hit Multi-Decade Highs as Middle East Conflict Pushes Oil Prices Up

On August 18, 2026, the interest rate the U.S. government pays on 10-year loans rose to 4.72% — its highest in decades, per Swissinfo. Japan and Europe saw similar highs, per Reuters. Oil reached $91.15. Renewed Middle East fighting ended a May ceasefire that had briefly eased oil-fueled price increases. Higher rates make mortgages and business loans pricier but pay more to savers buying bonds.