Under persistent inflation pressure, expectations that interest rates will stay elevated are increasing, and global bond markets are falling further.

Benchmark US Treasury yields have climbed to their highest level since 2002, while long-term UK gilt yields have also risen to their highest level in nearly 30 years.

As oil prices advanced, the 10-year US Treasury yield briefly rose 4 basis points to 5.34%, breaking above its 2007 high.

The 30-year US Treasury yield also climbed to its highest level since 2002.

The 30-year UK gilt yield rose 5 basis points to 6%, reaching its highest level since March 1998.

Escalating conflict in the Middle East has pushed oil and gas prices higher, weighing on the global economy and driving investors to bet that central banks, including the Federal Reserve, will raise rates further.

At the same time, the US government's massive borrowing needs and market concerns about the UK's fiscal position have added pressure to each country's bond market.

Overnight index swaps have fully priced in one Federal Reserve rate hike by the end of the year.

Meanwhile, strong investment in artificial intelligence infrastructure has also increased demand for capital, pushing up global borrowing costs.