Global Bond Sell-Off Sends Borrowing Costs to Multi-Decade Highs

A global sell-off of government bonds gripped markets on Tuesday morning, sending borrowing costs to multi-decade highs.

The move comes after a window for a new deal between the US and Iran closed without a breakthrough, reigniting concerns about inflationary pressure.

The effective closure of the Strait of Hormuz has seen the cost of energy and other vital commodities rise, with oil prices extending their rally to hover above $90-a-barrel mark.

At 4:16 a.m. ET, yields on US 30-year Treasurys were up almost 2 basis points to 5.3275%, the highest level since 2002.