Demand for longer-term U.S. debt gets weaker as one shock after another stokes fear that high inflation is here to stay

Bonds sold off sharply around the world on Friday as investors brace for persistently elevated inflation amid the ongoing energy crisis.

Oil jumped after the U.S.-China summit wrapped up without any signs that Beijing will lean on ally Iran to reopen the Strait of Hormuz.

That followed a series of U.S. debt auctions this past week that signaled tepid demand for longer-term Treasuries as fresh consumer and producer inflation data came in hotter than expected.

On Wednesday, the Treasury Department sold $25 billion of 30-year bonds at a 5% yield for the first time since 2007.  Before then, no 30-year Treasury carried an interest rate above 4.75%.

It was a stark contrast from mid-February—just before the U.S.-Israeli war on Iran started—when a Treasury offering saw the highest demand ever in the history of 30-year auctions.

In addition to the latest auction of so-called long bonds, sales of three- and 10-year Treasuries earlier in the week also drew less demand than expected.

Skittishness among bond investors is becoming a trend. In March, auctions for two-, five- and seven-year Treasury notes all saw weak demand, forcing yields to go higher than expected.

Higher yields........

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