Global bond sell-off intensifies as US-Iran tensions stoke inflation fears

TL;DR

Global government bond sell-off resumed, increasing UK borrowing costs.
10-year UK gilt yields hit highest level since mid-2008, nearing 5.3%.
Investor fears about inflation and deficits intensified after US-Iran exchanges and oil price increases.
Higher bond yields increase government debt financing costs.
UK fiscal headroom may be significantly reduced, potentially less than £14bn, impacting John Healey's budget.
Healey faces pressure to choose between tax increases or spending cuts, and to fund higher defence spending.
Asian stock markets also fell sharply amid global market jitters.
US attempts to influence financial markets, including supporting the yen and buying back treasuries, have not been successful.

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