Sep 11, 2026 – 11.32amInvestors are bracing for the global bond storm to wreak havoc on still-elevated share market valuations as a sharp spike in oil prices adds to fears that the Reserve Bank will be forced to tip the economy into recession to stamp out runaway inflation.Government bond yields surged to fresh multi-year highs overnight after escalating hostilities in the Middle East sent Brent crude towards $US109 a barrel, the highest in nearly four months. While the US Treasury tried to soothe bond markets by buying back $US5.2 billion ($7.3 billion) of debt, the amount was less than investors had anticipated.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
ASX sell-off deepens as recession odds ‘increase by the day’
Investors are worried that lofty stock valuations are close to a tipping point as the global bond market sell-off infects sentiment.
TL;DRAI
Oil spikes to $109/barrel following Mideast escalation; government bond yields reach multi-year highs, forcing RBA toward recession-inducing rate hikes. Rising rates compress venture funding and reduce enterprise AI/infrastructure budgets as economic cycle shifts.
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