Europe's Bond Selloff Deepens as Middle East Tensions Lift Oil

Government bonds around the world became less attractive to investors, so their yields went up.

This happened after fighting between the United States and Iran pushed oil prices higher.

More expensive oil can make many goods and services cost more.

Investors therefore became more worried about inflation and possible interest-rate increases.

Yields reached especially high levels in Germany, the United Kingdom, the United States, and Japan.

The U.S. dollar also strengthened because it is viewed as a safe currency and the United States exports oil.

Analysts said bond markets were still working normally, rather than showing panic.

However, they warned that high borrowing costs and large government debt supplies could create concerns.

France's upcoming bond auction will be closely watched by investors.