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Stagflation Risks Rise Amid Market Turmoil
The article discusses the rise in global borrowing costs due to increases in energy prices, as the yield on the 10-year German government bonds surpassed 3.5% for the first time since 2011. Similarly, the yields on 10-year U.S. Treasury bonds have risen above 4.9%. Oil prices remain close to $100 per barrel, with potential to rise to $120 if tensions in the Strait of Hormuz persist and supplies decrease, fueling fears of "stagflation" in global markets. These factors are putting additional pressure on the world economy, as concerns grow about weak economic growth amid rising inflation.
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