Bond rout flags persistent inflation risk as debt and geopolitics reshape markets

A sharp global sell-off in government bonds Send long-dated yields to multi-year highs, signaling investor concern that inflation may stay elevated due to rising government debt, higher energy costs, and a shift toward protectionism and geopolitical tensions. Central banks face a tricky path as inflation remains vulnerable to shocks while growth slows, prompting debates on rate trajectories; investors are shifting to shorter-duration, higher-income strategies to navigate a potentially more persistent inflation regime.