On Tuesday, the 10-year treasury rate yield reached a 19-year high at 5.041% as investors are wary Iran war fallout

Scott Bessent, the US treasury secretary, claimed the government’s massive buyback of US bonds was a success.

The claim came as the 10-year treasury yield reached a 19-year high on Tuesday, increasing pressure on interest rates as the Federal Reserve weighs another hike to see off rising inflation.

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© Photograph: Roberto Schmidt/AFP/Getty Images

© Photograph: Roberto Schmidt/AFP/Getty Images

© Photograph: Roberto Schmidt/AFP/Getty Images

Iran war and turbulent global bond markets add to pressure as rate decisions loom this week in major western economies

• Economics viewpoint: perilous UK economic conditions trace back to Trump

Central bankers in economies including the US, Japan and the UK will face a moment of truth this week, as surging inflation raises the prospect of higher interest rates.

Policymakers in all three countries will set rates in the next seven days against the backdrop of turbulent global bond markets.

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© Photograph: Jason Lee/Reuters

© Photograph: Jason Lee/Reuters

© Photograph: Jason Lee/Reuters

As John Healey drafts his autumn budget, the US president’s policies continue to inflate debt servicing costs

Britain is not entirely in control of its own destiny, from the rising cost of the weekly shop, to the vaulting cost of government borrowing. What is said and done in Westminster matters. But the global backdrop is making life tough, not least in the deeds and words of one man: Donald Trump.

As John Healey drafts his plan for next month’s autumn budget, the perilous economic conditions the chancellor must navigate can be traced back to the door of the US president.

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© Photograph: Manuel Balce Ceneta/AP

© Photograph: Manuel Balce Ceneta/AP

© Photograph: Manuel Balce Ceneta/AP

Crude jumps above $107 a barrel amid concerns over Middle East conflict and out-of-control government borrowing

Nervous investors across big economies have been dumping government bonds, driving up the cost of borrowing, as surging oil prices amplified fears about rising inflation.

The cost of a barrel of oil jumped 6% to above $107 on Thursday amid concerns that advances by Houthi rebels along the Red Sea coast in Yemen could choke off Saudi crude exports.

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© Photograph: YONHAP/EPA

© Photograph: YONHAP/EPA

© Photograph: YONHAP/EPA

Around the world, rising bond yields reflect shifting expectations on how fast policymakers will raise interest rates.

In an interview, Italy’s hard-right leader reveals how pragmatism is reshaping her vision for Europe.

© Davide Monteleone for The New York Times

Government bond yields are hitting multi-decade highs, reflecting anxiety about debt levels, deficits and inflation. The effects will extend to mortgages, business loans and other types of credit.

© The New York Times