Global bond rout deepens

Business Recorder reported that the selloff in global bond markets intensified on Tuesday, as investors grew uneasy about inflation and rising government debt. Japan's 10-year yield touched 3 percent for the first time since 1996, while yields in Germany and Britain climbed to their highest levels in well over a decade. The US 10-year yield, meanwhile, rose to 4.788 percent, up 3 basis points on the session.

Investors fear that the US debt load, which has reached USD 40 trillion, could prove lasting and difficult to reverse without tough national choices. Deficit spending by several large economies, notably the US, has added to the strain in recent years. Wars from Russia-Ukraine to the Middle East have also pushed energy prices higher, feeding into interest rates and the cost of living.

Brent crude gained close to 2 percent, trading above USD 92 a barrel on Tuesday. The gains followed Monday's direct US-Iran exchange of fire, the first such clash in a month. A TD Securities strategist called the move a genuine regime change, since Japanese government bonds had long anchored global fixed income.