Global bond yields hit multi-decade highs as governments pay the price for U.S.-Iran stalemate

JUST IN: Global government bond yields hit multi-decade highs as investors price in fallout from the US-Iran stalemate. US 30-year Treasury yields hit their highest since 2002, with German, French, Japanese, British and other sovereign yields also spiking.

The US government hasn't paid this much to borrow since 2002.

Thirty year Treasury yields hit 5.33 percent this morning, and the bleeding went global. German bunds at a fifteen year high, French yields at their worst since 2008, and Japan's ten year topped a forty year high. You can see the mood on the floor of the New York Stock Exchange, and it isn't pretty.

The trigger is the one we've been watching all week. The window for a US Iran deal closed with nothing, Trump ruled out extending the ceasefire, and overnight a cargo ship was hit by a projectile in the Strait of Hormuz. That waterway has been effectively shut for nearly six months, and Brent crude is sitting above 90 dollars a barrel.

So here's the ugly maths. Every month this stalemate drags on, oil stays expensive, inflation stays sticky, and every government on earth pays more for its own debt. The war bill isn't just Washington's anymore. It's everyone's.

This is Sara White, reporting for HIT.

Source Read the original reporting at cnbc.com