Washington DC, May 20 -- Yields on the US government's longest-dated bonds shot up to their highest levels since 2007 on fears of inflation rising amid uncertainty around the Iran war and no clarity on when the critical Strait of Hormuz will open.

The 30-year bond yields rose seven basis points to 5.20% on Tuesday, indicating how jittery the investors are as concerns spike over price rise and a subsequent hawkish US Fed raising interest rates. The new US Federal Reserve chair Kevin Warsh takes over the reins of the most powerful central bank in the world on Friday.

The bond rout was seen in the European and Japanese markets, especially after a lacklustre China trip by Trump, where he failed to get any significant headway on the Iran fro...