Global government bond yields declined sharply in February as equity market turbulence intensified.

Global government bond yields declined sharply in February as equity market turbulence intensified. The U.S. 10-year Treasury yield fell 29.5 basis points to close at 3.96%, marking significant movement in the world's most important benchmark rate. Canada's 10-year yields dropped 29 basis points to 3.13%. The selloff in bonds reflects mounting concerns over geopolitical tensions, uncertainty surrounding monetary policy decisions, trade policy shifts, and artificial intelligence implications for economic growth. Rising equity volatility typically drives investors toward safer government bonds, creating downward pressure on yields. These moves signal market participants are reassessing risk and potentially pricing in slower economic growth ahead. The synchronized decline across major economies suggests global uncertainty is influencing fixed income markets significantly.