Bonds in Freefall and Yen Under Siege

Global bond markets are selling off as US-Iran conflict drives energy inflation, pushing US 30-year yields to 5.20%. Simultaneously, the Yen is under pressure near 159 as the BOJ faces intervention constraints and fiscal stress.

Key Takeaways

• 1.The ongoing US-Iran conflict has triggered an energy price shock, with Brent crude rising 55% above pre-war levels to over $110/bbl, driving global inflation and a bond market sell-off.
• 2.US Treasury yields have reached levels not seen since 2007, with the 30-year yield hitting 5.20% and Citigroup targeting 5.5% as the next threshold.
• 3.Japan faces extreme fiscal and monetary stress, with 30-year JGB yields at multi-decade highs and the Yen (USD/JPY) approaching 159, nearing intervention limits.

Table of Contents

• Market Commentary

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