Bond yields take center stage this morning, and for good reason:

Driven by a 3–4% surge in oil prices, with Brent hitting $109, and hotter-than-expected Japanese PPI, inflation concerns are intensifying and, consequently, yields on advanced-economy government bonds are soaring this morning.

As illustrated in the Bloomberg chart below, these moves include the ultra-sensitive UK 10-year yield at 5.14%.

Also of note, the 30-year Japanese yield has traded this morning at 4%, its highest level since 1999.

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