New York —
Global bond yields rose Tuesday to their highest levels in decades as an escalation in the Middle East conflict pushed up oil prices and increased concerns that the Federal Reserve and other central banks could raise interest rates this month.
In Japan, the 10-year government bond yield hit 3% for the first time since 1996. In the UK, the 30-year yield reached the highest level since 1998. Germany’s 10-year yield hit its highest level since 2011.
Yields rise when bond prices fall. Investors are dumping bonds, pushing yields higher, as they assess the outlook for inflation and central bank interest rates.
Oil prices jumped to start the week, adding to nerves about inflation, as the US and Iran traded attacks for the first time in over a month. Brent crude, the global oil benchmark, pushed higher Tuesday after US officials said forces began striking Islamic Revolutionary Guard Corps (IRGC) targets in Iran at 12 p.m. ET.
