Bond Yields Hit Multi-Decade Highs: US-Iran War's Hidden Impact on Tech Sector

The US 30-year Treasury bond yield surged to 5.324%, the highest since 2007. As hopes for a US-Iran ceasefire faded, market fears escalated. Trump's threat to bomb Oman pushed oil prices above $91/barrel, fueling inflation concerns. European bonds also hit record highs, with Germany and UK 10-year yields reaching 2011 and 2007 levels. Japan's 10-year bond yield climbed to 2.945%, its highest in 30 years. Investors are nervous about both the US-Iran conflict and rising government borrowing.

Rising bond yields reflect not just inflation fears but also increased risk premiums for long-term debt. This is particularly concerning for sectors like semiconductor manufacturing and AI, which are already facing high borrowing costs.