New Delhi, Sept. 3 -- The bond markets are under tremendous pressure globally!

The turmoil is driven by several factors: First, the US war with Iran is heating up again, driving up US defense spending and the cost of oil, gasoline, diesel and jet fuel. Second, government borrowing. And the third factor impacting bond prices is AI spending. Here's a look at how war, government borrowing and the AI boom are combining to put pressure on global bond markets.

The US-Iran conflict has pushed oil prices higher, with Brent crude recently trading around $95 per barrel and briefly approaching $100. Higher energy costs raise the risk that inflation will remain elevated for longer. Conversely, the higher inflation expectations translate into higher...