The global bond rout is accelerating. Here’s what to know.

Subscribe to enjoy similar stories.A weekslong selloff in government bonds has intensified in recent days, threatening to drive up borrowing costs across the globe and knocking some momentum out of what had been a furious stock rally.With bond prices sliding, the yield on the 10-year U.S. Treasury note, a key benchmark for mortgage rates and other borrowing costs, reached as high as 4.687% Tuesday, its highest intraday level since January 2025.The yield on the 30-year U.S.

Treasury also climbed to a new 18-year high near 5.2%, helping send the S&P 500 to its first three-day decline since March. The blow has been particularly acute to tech and industrials stocks, with both sectors down more than 1.5% this week.Here’s what to know:The main driver of the bond selloff is the U.S.

conflict with Iran, which has paralyzed shipping through the Strait of Hormuz and kept oil prices about 60% above where they were before the war started.Yields on government bonds largely reflect what investors expect interest rates set by central banks to average over the life of a given bond. With elevated energy prices feeding into inflation, investors have dramatically shifted their rate expectations in the U.S.—from anticipating cuts before the war, to now betting that the Federal Reserve will raise rates by the end of the year.That shift mirrors a change in perspective about the conflict itself.

Bond yields initially steadied after President Trump announced a cease-fire with Iran on April 7. For the next few weeks, many remained cautiously optimistic that the two sides could reach a deal that would reopen the strait.But those hopes have dimmed recently, with both countries seemingly dug into their positions and trying to win a contest of