October marks rally for global bond markets as yields drop sharply

Global bond markets saw substantial gains in October as government-bond yields in the UK, Germany, France and Japan fell by around 30 basis points — one of the largest monthly drops since 2023. The rally was supported by improved inflation data from major economies and expectations of upcoming rate cuts by central banks. Despite the rally, analysts caution that structural risks remain, including high sovereign borrowing, supply-chain disruption and trade tensions, meaning yields may not sustain the fall without stronger fundamentals.