Global Bond Yields Surge to 2008 Highs on Iran War, Inflation
Oil prices jumped above $90 a barrel as fresh U.S. strikes on Iran deepened fears of inflation and higher central bank rates.
- On Tuesday, a global government bond selloff intensified, pushing yields to their highest levels since mid-2008 as renewed U.S.-Iran hostilities drove oil prices sharply higher and reinforced expectations that the Federal Reserve will raise rates in September.
- Following tanker attacks in the Strait of Hormuz, CENTCOM announced a fresh wave of strikes against IRGC targets on Tuesday, hitting air defense and radar systems across southern Iran.
- In Europe, Germany's 10-year yield hit 3.35 percent, France's 10-year yield touched 4.21 percent, and UK 10-year gilt yields rose more than 9 basis points to 5.23 percent, all marking multi-year highs.
- President Donald Trump stated he is "not trying to force Iran to the bargaining table," claiming the U.S. has "almost total control" over the Strait of Hormuz, while Brent crude pushed above $90 a barrel.
- Traders now price in a 65 to 74 percent probability of a Federal Reserve rate hike at the September 15-16 meeting, while Treasury Secretary Scott Bessent said G20 members will look to "reach a resolution on this unsustainable equilibrium" in the coming weeks.
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Unending Trump 'doom loop' as vital industry flashes red
President Donald Trump’s war with Iran has created an economic “doom loop” that experts warn has “no end” in sight. Now, according to new reporting from CNN, “yellow lights are flashing in the most important market on the planet: The US bond market.” As the bond yields skyrocket, investors are selling fast, wreaking chaos across the economy. As CNN explains, the situation is being driven by a number of contributing factors, at the core of which …
Iran, the Federal Reserve and Japan have contributed to increased profitability
Watch Markets: Global Bond Yields Back to Highest Since 2008 on Inflation Concern, Fed Hike Expectation
A selloff in global bonds sent yields back to the highest level in almost two decades as rising oil prices fueled inflation concerns and investors ramped up expectations that the Federal Reserve will raise interest rates. Bloomberg's Ven Ram reports.
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