The global government bond sell-off deepened on Tuesday, with yields from Japan to the U.S. hitting new highs and equities easing as investors fretted that energy-driven inflation would force central bankers to hike interest rates.
The latest bout of fighting between the U.S. and Iran has pushed oil prices higher, stoking the fears of tighter monetary policy that could weigh on economic growth.
Heavy selling sent the interest rate on 30-year U.K. government bonds to the highest since 1998, while the 10-year yield surged to a level not seen since the 2008 global financial crisis.
Japan's 10-year bond yield touched a 30-year high of 3%, reflecting worries about plans for massive government spending.
The yield on the 30-year U.S. Treasury bond stood at 5.27%, not far from levels last seen in 2007, while the 10-year yield rose to its highest level since January 2025.
