G7 bond yields are hitting multi-decade highs because of the Iran war.
European, Japanese, UK, and US government borrowing costs all rose after US President Donald Trump’s threats toward Iran pushed oil prices above $111 a barrel. The sell-off also hit developing economies and stock markets slipped.
The inflationary pressure of the conflict, along with large government deficits, mean yields will remain high for the foreseeable future, Apollo’s chief economist warned. Central banks are yet to raise interest rates for fear of stifling growth, but consumers are already being hit as lenders bet that hikes are on the way: Mortgage costs have risen sharply across Europe and North America.
