Global bond yields spiked across major economies (US 10-year at 4.79%, UK at 5.23%, Germany at 3.35%) following renewed US military operations against Iran in late August/early September 2026. Rising oil prices and geopolitical tensions are compounding inflation concerns and reducing investor confidence in sovereign debt. Structural issues—ballooning US public debt ($40 trillion), persistent budget deficits ($1.8 trillion), and unclear Fed policy—mean the surge is likely sustained rather than temporary, despite Treasury buyback operations yielding only short-term relief.