Fears of a lasting inflationary shock from the Iran war sent global government borrowing costs soaring on Friday, with the 30-year US Treasury yield ending the week at its highest closing level since 2007.
Long-dated bonds across Japan, the UK and the US sold off, dragging stock markets lower. The 30-year US Treasury yield — a key benchmark for global long-term interest rates — jumped 0.1 percentage points to 5.12 per cent, its highest closing value since July 2007.
In Japan, the 30-year yield climbed 0.14 percentage points to breach 4 per cent for the first time ever following stronger than expected inflation data, while the 30-year gilt yield in the UK rose 0.2 percentage points to its highest level this century at 5.85 per cent, as inflation fears combined with political uncertainty to weigh on bonds.