Oil Price Surge Sparks Global Bond Yield Spike
Global bond yields surged to new highs on September 11 as oil prices jumped 6% overnight, hitting a four-month high of $109.97 per barrel for Brent crude.
The spike in oil prices has raised concerns about inflation risks, leading investors to price in more policy tightening from central banks around the world.
Analysts at RBC Capital Markets predict that Brent crude could hit $121.99 a barrel by the fourth quarter, citing increased violence in Yemen and restricted oil flows through the Strait of Hormuz.
The US Federal Reserve is expected to raise interest rates in September to combat inflation, with bond yields surging globally as a result.
Asian stocks declined, with Australia's resources-heavy index falling 1%, Japan's Nikkei tumbling 2.8%, and South Korea's Kospi diving 2.7%.