Bonds Boil as Energy Prices Surge Amid Iran Conflict
A new wave of strikes in the Iran war has driven energy prices higher, intensifying a selloff across global bond markets. Investors are bracing for central banks to raise interest rates this month, with U.S. 10-year Treasury yields reaching their highest level since 2023 at 4.8%. The rise is challenging equities and increasing government borrowing costs. Central banks including the Federal Reserve, European Central Bank, and Bank of Japan are expected to hike rates soon. New Zealand's central bank has already raised rates twice this month. Meanwhile, rising energy prices add pressure on governments ahead of key political events in Britain, France, Germany, and U.S. midterms. The AI sector continues its strong performance with recent earnings beats from Dell and Palo Alto Networks. Market attention now shifts to upcoming economic data including the ADP payrolls report and Fed's Beige Book.
Topics: bonds central banks energy prices geopolitical tensions interest rates