Global bond yields hit multi-decade highs as governments pay the price for U.S.-Iran stalemate

A trader works on the floor of the New York Stock Exchange. NYSEA global sell-off of government bonds gripped markets Tuesday morning, sending borrowing costs to multi-decade highs, as hopes for an end to hostilities it the Middle East rapidly faded. It comes after a window for a new deal to be reached between the U.S. and Iran closed without a breakthrough, reigniting concerns about inflationary pressure. On Monday, U.S. President Donald Trump ruled out extending a ceasefire between Washington and Tehran, while Iran issued fresh threats of military escalation. Both sides have rejected further peace talks. Overnight, a cargo vessel was struck by a projectile as it transited the Strait of Hormuz — a waterway that acts as a critical shipping route for global trade and has become a key sticking point in negotiations. The effective closure of the strait throughout the nearly six-month war has seen the cost of energy and other vital commodities rise. Oil prices extended their rally on Tuesday, with global benchmark Brent crude oil futures hovering above the $90-a-barrel mark. At 4:16 a.m. ET, yields on U.S. 30-year Treasurys were up almost 2 basis points to 5.3275%, the highest level si...