New Delhi, Oct. 7 -- The global bond sell-off is likely to continue in the near term as elevated fiscal deficits, rising government debt, heavy borrowing for artificial intelligence infrastructure and expectations of tighter monetary policy continue to push up long-term yields, according to a report by ICICI Bank Research.

The report said yields could rise further before potentially peaking in early 2027, with a subsequent consolidation if oil prices ease and AI-related borrowing starts to moderate.

"We expect the bond sell-off to continue in the term as the structural factors driving it are here to stay," the report said.

The 10-year US Treasury yield had risen to 5.3 per cent in late September and early October, its highest level sin...