Iran War Drives Up Energy Prices; US Treasury Yields Hit Multi-Decade Highs
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Global bond selloffs are deepening amid the Iran war. The yield on the US 30-year Treasury bond rose to 5.48 per cent, its highest level since 2004. The benchmark 10-year Treasury yield also climbed to 5.20 per cent, according to reports. Investors cited high energy prices, strong economic growth, and higher government spending as factors keeping inflation elevated.
Why it matters
The US Treasury market is the world's largest and most influential government bond market. The rise in energy prices following the Iran war has added to the pressure on bond markets across major economies. Further rises in yields could put pressure on financial markets and companies by making borrowing more expensive.
Fighting in Iran is affecting fuel prices and the bond market.
Who's involved
- inflationInflation theory cited as a factor keeping inflation elevated.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- inflationSpeculative
High inflation could increase the cost of borrowing for businesses and governments.