Global markets face volatility amid rising U.S. bond yields and geopolitical risks

Global markets are facing significant volatility driven by rising geopolitical tensions in the Middle East, surging oil prices, and intense selling pressure in the bond markets. Investors are closely monitoring the upcoming Jackson Hole Economic Policy Symposium and forthcoming U.S. growth and employment data for direction.

In the United States, bond yields have reached critical levels. The 10-year Treasury yield is approaching 4.75%, while the 30-year yield has hit 5.34%, its highest level since 2007. This surge is attributed to concerns over energy supply through the Strait of Hormuz and rising public debt, which has surpassed the $40 trillion threshold for the first time.

While the U.S. Treasury has attempted to ease market pressure through long-term bond buyback operations, concerns persist regarding fiscal stability and potential new economic sanctions against Iran. The combination of high interest rates and geopolitical risks continues to weigh on global stock indices.