India, Aug. 18 -- Global government bonds came under heavy selling pressure on Tuesday, pushing borrowing costs higher across major economies. Investors are becoming increasingly worried that the war between the US and Iran could last longer, keeping inflation and interest rates high.

The latest bond sell-off came after hopes for a new US-Iran deal faded. A possible window for reaching an agreement closed without any major breakthrough, bringing inflation concerns back to the center of investor attention.

US President Donald Trump said Monday that he would not extend the ceasefire between Washington and Tehran. Iran also issued fresh threats of military escalation. Both sides have rejected further peace talks, according to CNBC.

The St...