US Treasury yields climbed sharply on Monday as global bond markets experienced a selloff driven by fears of resurgent inflationary pressures and renewed hostilities in the Gulf region.
The 10-year Treasury note yield, a key benchmark for government borrowing, rose to its highest level in weeks, reflecting heightened risk aversion and shifting capital flows.
The yield move follows a sudden escalation in conflict in the Gulf, which has prompted a flight to traditionally stable assets.
This shift has disrupted the decades-long trend of declining mortgage rates, with home buyers now facing higher borrowing costs.
The selloff has also raised concerns about the for inflation and central bank policy.
The renewed tensions in the Gulf have amplified fears of supply-side shocks and inflationary pressures, which could delay the anticipated easing cycle.