Global bond yields surge to multi-year highs on inflation fears and oil shock

U.S. 30-year Treasury yields have reached their highest level since 2025, driven by a combination of persistent inflation fears and an oil price shock linked to the Iran war. The surge in energy costs has compounded already hot inflation data, pushing long-term borrowing costs sharply higher. This development signals growing market concern that central banks may need to maintain or even tighten monetary policy to contain price pressures. The yield spike affects global bond markets, as investors reassess the outlook for interest rates and economic growth. The situation underscores the fragility of the post-pandemic recovery, with geopolitical tensions adding to supply-side disruptions. Market participants are now closely watching for further policy signals from the Federal Reserve and other central banks.