Global bond markets are facing a shock due to fears of war-fueled inflation and rising national debt across major economies. ^[1] The US 10-year Treasury yield reached 4.79%, marking its highest level in 19 months since January 2025. ^[2] Hungary's forint fell to its weakest level since the days immediately preceding the April parliamentary election, briefly trading above HUF 370 to the euro on Wednesday morning. ^[3] Oil prices surged following military tensions in the Iran war, with Brent crude rising 4.5% to $94.52 per barrel and WTI crude climbing 5% to $90.03. ^[4] The 2-year US Treasury yield rose to 4.4% and the 30-year yield climbed to 5.27%, the highest since 2007. ^[5] ERSTE market analysts cited by Forbes stated that a combination of international developments and rising energy prices is putting pressure on the Hungarian currency. ^[6] Just a week earlier, on 25 August, the euro was trading at around HUF 360, marking a significant reversal from recent stability. ^[7] The dollar-forint exchange rate rose from approximately HUF 309 a week ago to HUF 319 on Wednesday morning, following a similar trajectory to the euro-forint rate. ^[8]