The Globe and Mail reports in its Tuesday edition that government bonds faced pressure Monday over concerns that the impasse over the Strait of Hormuz will drive up energy costs and inflation. The Globe's Eric Reguly writes that on Monday, 10-year German bond yields reached 3.193 per cent, the highest since 2011. Ten-year British government bond yields hit their highest level since 2008, with yields at 5.18 per cent, a climb of 0.6 percentage point since the start of the year. Meanwhile, the sell-off of U.S. bonds waned a bit. The yield on 30-year U.S. Treasuries lost a few basis points on Monday after ticking up to their highest level since 2023 earlier in the day. Inflation rates have been rising, pushing up the cost of debt, including mortgage rates. The U.S. Treasury last week issued bonds with a yield of 5 per cent for the first time since 2007. Mortgage rates, which are usually priced off bond yields, are climbing, adding to President Donald Trump's popularity woes as the Republican Party heads into the congressional midterm elections in November. Imperial College London economist Karim Abadir says he expects a recession in the medium term if the Hormuz crisis remains intact.