Bond-market turmoil and war are top of mind for investors today. In the U.S., the 10-year Treasury yield climbed as high as 4.815%, its highest intraday level since November 2023. Soaring bond yields threaten to raise financing costs for governments, consumers and businesses—and not just in the U.S.

In developed nations that don't enjoy the AI-fueled growth powering the American economy, worries about hot inflation and heavy fiscal loads are hitting even harder. In Germany, the 10-year yield rose further to 3.39%, on pace for its highest settle in 15 years. French and Japanese borrowing costs also drifted higher.

A rise in oil prices isn't helping: With the U.S. and Iran back to trading strikes, Brent crude futures are now trading some $20 more than their prewar price, threatening to stoke inflation and force central banks to lift interest rates. U.S. stock futures point to a muted open while overseas markets are having a down day.