Global Bond Yields Skyrocket on Inflation Fears and Rising Oil Prices

Global bond yields hit major new highs on Tuesday as renewed fighting in the Middle East lifted oil prices and investors worried about inflation.

The 10-year U.S. Treasury yield, a benchmark for prices across asset classes, broke resistance at 4.75% to stand at 4.78%, its highest since early 2025.

Ryutaro Kimura, a senior strategist at BNP Asset Management in Tokyo, said there's a sense of resignation about rising interest rates, which have been a reliable anchor for world markets for years.

The rise in oil prices and U.S.-Iran tensions are stoking worries about inflation, just as Federal Reserve Chair Kevin Warsh has reset expectations for the rates outlook.