New Delhi, July 26 -- A Federal Reserve that has zipped its lip on the path for its future interest-rate moves, an unexpectedly resilient U.S. economy, and renewed hostilities with Iran have together driven a selloff in the world's largest government bond market.

In turn, bond prices have slumped, impacting consumers and increasing pressure on Fed chairman Kevin Warsh, who will lead the central bank's policy meeting next week.

Yields and bond prices move in inverse directions-and rising yields ding the value of older, lower-yielding bonds. The yield on the 10-year U.S. Treasury note settled at 4.678% on Friday, while the yield on the 2-year note settled at 4.328%, near their highest levels since early 2025. The 30-year yield has now clo...