Long-term borrowing costs from the United States to Japan and Germany hit their highest levels in decades on Tuesday, as renewed inflation worries added to nagging concerns about the fiscal pressures facing some of the world's biggest economies. Thirty-year bond yields in the United States, the world's most systemically crucial government bond market, hit their highest since 2007 as oil prices -- up 50% so far this year -- rose back above $90 a barrel, fanning inflation worries as U.S.-Iran peace hopes faded. In Japan, inflation angst and expectations that Japan could hike interest rates as early as September pushed 10-year borrowing costs to a three-decade high just under 3%.
In Europe, Germany's 10-year Bund yield touched its highest since 2011, French yields were at their highest since 2009 and Britain's 30-year borrowing costs neared peaks hit in May that marked the highest levels since 1998. When a bond's yield rises, its price falls.
