The global bond rout is rolling on into September, raising borrowing costs for governments and putting pressure on U.S. stocks Tuesday.

Worries that an impasse in the Middle East will keep inflation hot and force central banks to raise rates are fueling the selloff.

Also weighing on bonds: Swelling fiscal deficits world-wide, increased competition from corporate borrowers and Fed Chairman Kevin Warsh's reluctance to give forward guidance.

The 10-year Treasury yield jumped, and was recently on track for its highest level since January 2025; its Japanese equivalent hit 3%, its highest level since 1996 after Scott Bessent hinted at possible BOJ rate increases. Bond yields also rose to multiyear highs in Germany and France.

U.S. stocks have opened lower, with the Nasdaq leading losses. Asian stocks had a downbeat session, with fast-fashion company Shein making a subdued stock-market debut.

Oil prices continue to climb after the U.S. and Iranian militaries clashed over the weekend for the first time in weeks.