Government bond yields surged to multi-decade highs across major markets, driven by renewed inflation concerns following retaliatory strikes between the U.S. and Iran.

US · 2026-09-01

1. Step 1 · The triggerUS-Iran military escalation raises geopolitical risk, driving inflation expectations higher.
2. Step 2 · Knock-onUS Treasury yields surge to multi-decade highs as investors demand higher compensation for inflation and risk.
3. Step 3 · Reaches youHigher yields increase borrowing costs and discount rates for US SMEs, tightening credit and reducing investment appetite.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: CNBC

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