Bond Traders See Tipping Point Toward New Era of Higher Yields

A new era of elevated borrowing costs is potentially underway as war-driven inflation angst intensifies in the US bond market, sending 30-year yields toward a two-decade high above 5%.

Treasuries are coming off their worst week in a year after a renewed rally in oil added to worries from reports showing inflation accelerated last month. The fear of resurgent price pressures roiled fixed-income globally, sparking a rout in markets including the UK and Japan. Group-of-Seven finance chiefs are set to discuss the debt selloff when they meet this week.