Bond yields surged to levels not seen since the run-up to the global financial crisis on Tuesday as markets roiled over persistent price hikes due to President Donald Trump’s war with Iran. The yield on the 30-year Treasury note rose to 5.18 percent, its highest level since July 2007, nearly 19 years ago, according to the New York Times. The rise, which threatens to push up mortgage rates, auto loans, and business lending rates, comes as the Consumer Price Index showed inflation climbing to 3.8 percent, as the blockade of the Strait of Hormuz has sent oil prices soaring. The Treasury market last experienced similar turbulence after Trump introduced his “Liberation Day” tariffs in April last year. The 79-year-old president later cited the jump in rates as a major factor in his decision to back away from his most aggressive tariff plans, although it remains to be seen if the latest surge will cause him to change course on Iran. The higher rates dragged down the broader stock market, with the S&P 500 dropping 0.7 percent, according to the Associated Press.
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