Global Bond Yields Soar as Inflation Fears Intensify

Global bond yields continued their upward trend on Tuesday, reaching new highs as inflation fears persisted. The yield on the benchmark U.S. 10-year Treasury note rose to 4.792%, its highest since January 2025. This marks the fifth consecutive session of rising yields, with expectations for interest rate hikes growing stronger.

Japan's 10-year benchmark yield also broke above 3% for the first time in over two decades, while British and euro zone yields hit record highs. The global bond selloff is putting central banks on notice, according to Jake Dollarhide, CEO of Longbow Asset Management. He warned that potentially it's rate hikes across the board, which would be bad news for any company.

Higher oil prices are also contributing to inflation worries. New U.S. strikes against Iran fanned fears of a wider renewal of hostilities in the six-month conflict. The closure of the Strait of Hormuz has put upward pressure on fuel prices, with Brent futures rising $4.16 to $94.65 a barrel and U.S. West Texas Intermediate crude increasing by $4.46 to $90.22.

The dollar strengthened against major currencies as investors sought safe-haven assets. The dollar index rose 0.27% to 99.68, with the euro down 0.23% at $1.1589 and the Japanese yen falling 0.3% to 160.19 per dollar.