Government borrowing costs surged across major economies Tuesday, with yields reaching multi-decade highs in Japan and Britain as renewed fighting between the U.S. and Iran drove oil prices higher and intensified concerns that another burst of energy inflation could keep interest rates elevated.
Japan's benchmark 10-year government bond yield touched 3% for the first time since 1996, while the two-year yield climbed to its highest level in more than three decades. The selloff spread across Europe and the U.S., where the 10-year Treasury yield rose to about 4.79%, its highest since January 2025.
