Global bond sell-off deepens on inflation

A global sell-off of government bonds deepened on Tuesday, sending yields to multi-year highs across major economies as investors worried that energy-driven inflation would force central banks to raise interest rates. The latest escalation between the United States and Iran, including an exchange of strikes over the weekend and threats by President Donald Trump to hit Iran 'hard', pushed oil prices up over 2%, with Brent crude above $92 a barrel. This revived supply concerns, especially with Iran keeping the Strait of Hormuz closed and the US maintaining a counter-blockade of Iranian ports. European Union — Eurozone inflation hit a three-year high of 3.3% in August, cementing expectations that the European Union — European Central Bank would raise rates next week. The 30-year UK gilt yield reached its highest since 1998, Japan's 10-year yield hit a 30-year high of 3%, and the 30-year US Treasury yield stood at 5.27%, near 2007 levels. Equities fell globally, with major indices in European Union — Europe, Asia, and the US closing lower. The yen weakened despite Treasury Secretary Scott Bessent's comments suggesting Japan should support its currency, seen as pressure on the Japan — Bank of Japan to tighten policy. In company news, Shein had a volatile Hong Kong debut, falling 10% before closing flat, while MediaTek surged nearly 10% after Nvidia announced a $3.5 billion investment.