Bond Markets Reel as Oil Surge Sparks Inflation Fears

Global bond markets are experiencing losses as energy prices surge once again, increasing the threat of inflation. The UK's gilt yields have set their longest period above 5% in nearly two decades, while Germany's 10-year yield reached its highest since 2011.

The US 30-year yield came close to its highest levels since 2007, and the average yield on the Bloomberg Global Treasury Index surpassed a peak from three years ago. The index is set for its biggest monthly loss since March, with investors expecting key central bank decisions next week from the Federal Reserve, Bank of Japan, and Bank of England.

Torsten Slok, chief economist at Apollo Global Management, stated that oil prices are creating problems for multiple central banks, including the Fed, ECB, and BoE. The global debt market has been battered by surging energy prices this year, with crude prices climbing above $100 a barrel on Thursday.