Global Bond Sell-off Deepens, Yields Surge Amid Inflation Fears and Geopolitical Tensions

Government bond yields are rising across major markets, with the U.S. 10-year Treasury yield hitting a 20-month high of 4.7880% and Japan's 10-year government bond yield reaching 3% for the first time since 1996. This deepening global bond sell-off is attributed to renewed U.S.-Iran hostilities in the Strait of Hormuz, which have pushed oil prices higher and reignited inflation concerns, alongside rising expectations of central banks stepping up interest rate increases.