Global markets trade cautiously on inflation concerns
Investors remain wary as sovereign bond yields reach decade highs amid fears of a lasting inflationary shock from the ongoing Iran war. While oil prices eased slightly to 110 dollars a barrel, Asian stocks fell and markets now await Nvidia earnings and UK employment data.
Global markets remained fragile on Tuesday morning as investors weighed a pause in Iran-related hostilities against a backdrop of decade-high bond yields. Oil prices retreated to $110 a barrel but remain 50% higher than pre-war levels. This persistent energy pressure threatens to deliver a lasting inflationary shock to the global economy.
### Bond Yields Pressure Global Recovery The United States and other G7 nations are facing a sharp rise in borrowing costs. The average 10-year sovereign bond yield for G7 countries is approaching 4%, up from 3.2% in late February. G7 finance ministers met in France on Monday to address mounting public debt and bond market volatility.
