Global bond markets kept sliding Monday as rising energy prices from the Middle East conflict fueled expectations of prolonged inflation. US 30-year Treasury yields climbed to 5.16%, a one-year high, while the 10-year touched 4.63%, its highest since February. Japan's bond market buckled too, with its 10-year yield at 2.75% and the 30-year spiking to 4.1% from below 1% in 2022.

The sell-off reflects investor unease over energy supply disruptions. Brent crude rose 2% to just over $111 a barrel after the Strait of Hormuz, which carries a fifth of global oil, largely closed following the US-Israeli conflict with Iran that began in late February. Barclays strategist Mitul Kotecha cited the Iran war, UK bond stress, and US debt worries as compounding the pressure.

Equities suffered in kind. S&P 500 and Nasdaq 100 futures both dropped 0.7%, while Europe's Stoxx 600 fell 0.6%. The dollar edged up 0.1% and India's 10-year yield climbed to 7.1%. Investors appear to be pricing in a pivot point for energy markets with no resolution on Hormuz in sight.