Global bond markets sell-off deepens on inflation fears

• Global bond markets are selling off, driven by inflation fears, with US 10-year Treasury yields reaching 15-month highs.
• G7 Finance Ministers and Central Bank Governors are meeting in Paris to address these global economic challenges and the bond market rout.
• Rising crude oil prices and escalating tensions in the Middle East are contributing to market uncertainty and inflationary pressures.
• Airlines face potential failures due to soaring jet fuel costs and warnings of physical shortages in Europe, leading to flight cancellations.
• The Federal Reserve is anticipated to cut interest rates once by year-end and again early next year, despite recent inflation prints, as they aim to look through energy shocks.

Global bond markets are experiencing a deepening sell-off, with US 10-year Treasury yields hitting 15-month highs due to persistent inflation fears. Geopolitical tensions in the Middle East and rising crude oil prices are exacerbating these concerns, impacting stock markets and raising the prospect of airline failures due to jet fuel shortages.