Bond Yields Soar to Post-Crisis Highs Amid Iran Conflict

The bond market continues to experience significant turmoil, with yields on U.S. Treasury bonds reaching their highest level since the 2007 financial crisis.

The yield on 10-year Treasury bonds climbed to 5.025 percent on Tuesday morning, a stark increase from just over one percentage point since the start of the war in Iran in late February.

This sharp rise is largely attributed to inflation concerns stemming from the conflict, which has led economists to predict higher and more persistent inflation rates.

The European Central Bank's recent decision to raise its key interest rates has also put pressure on central banks worldwide, including the U.S. Federal Reserve, which is expected to follow suit with rate hikes this Wednesday.