Bond markets convulsed on Tuesday, pushing the rates on U.S. Treasuries to levels not seen since the global financial crisis nearly 20 years ago, as investors grew increasingly anxious about rising inflation because of the war in Iran.
The yield on the 30-year Treasury note rose to 5.18 percent on Tuesday, its highest level since 2007. Bond yields move inversely to prices.
The rising rates, which are pushing up borrowing costs for governments, homeowners and businesses, could be a critical pressure point for the Trump administration as it continues to pursue its campaign against Iran, which has pushed up oil prices worldwide.
The last time President Trump faced such turmoil in the Treasury market was after he announced in April last year that he would raise tariffs on nearly every U.S. trading partner. The steepening rates were cited as a primary reason that Mr. Trump later backed down from many of his most draconian proposals.
This time, investors across the world are becoming increasingly concerned about the fallout from the monthslong conflict in the Middle East, where, despite a cease-fire between the United States and Iran, efforts to find a lasting peace deal have stalled.
The yields on 30-year bonds in Canada, Germany, France, Spain, Portugal, the Netherlands and Switzerland all traded at their 12-month high on Tuesday. Across the rest of Europe and Asia, the long yield was also elevated
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