Global bond yields have surged as governments pay the price for the U.S.-Iran standoff:
- International government bond yields followed U.S. Treasury yields higher.
- A failure to reach a diplomatic breakthrough between the U.S. and Iran raised concerns about higher oil prices and prolonged inflationary pressure.
- Economists noted that the AI trade was also contributing to rising borrowing costs.
On Monday, U.S. President Donald Trump ruled out extending a ceasefire between Washington and Tehran, while Iran issued fresh threats of military escalation.
This situation has led to oil prices rallying again, with U.S. 30-year Treasury yields reaching 5.335% — the highest level since 2002.
As a result, investors have begun to worry that prolonged military actions may continue, potentially leading to higher oil prices.
