Middle East Tensions Spark Global Market Selloff

The Middle East conflict has sent shockwaves through global markets, causing a selloff in U.S. government bonds and pushing oil prices higher.

The yield on the 30-year Treasury bond rose to its highest level in almost 20 years, at 5.3264%, while the 10-year counterpart traded up 1.59 basis points at 4.7399%.

The pressure also spread to other major government bond markets, with Japan's 10-year bond yield on the brink of hitting 3% for the first time since the mid-1990s and euro zone bond yields at multi-year highs.

According to George Bory, chief investment strategist for fixed income at Allspring Global Investments, 'if things unravel and the conflict escalates, a mid-cycle adjustment would be necessary.'