Global Bond Sell-Off Deepens as Iran War Fuels Inflation Fears Government bonds are experiencing losses across major financial centers, including Tokyo and New York, as escalating oil prices tied to the Iran war intensify inflation concerns. Benchmark 10-year U.S. Treasury yields reached their highest point since February 2025, with other U.S. Treasury yields also hitting multi-month highs. Stock futures and Asian markets saw declines, with Japan’s Nikkei easing and South Korean stocks falling.

• Government bonds in Tokyo and New York extended losses on May 18.
• Rising oil prices linked to the Iran war are fueling inflation fears.
• Benchmark 10-year U.S. Treasury yields reached their highest level since February 2025.
• The two-year U.S. Treasury yield hit a 14-month high.
• The 30-year U.S. Treasury yield reached a one-year high.
• S&P 500 and Nasdaq futures fell in early trade.
• Japan’s Nikkei eased, and South Korean stocks fell.