The Financial Post reports in its Tuesday, April 7, edition that bond yields are rising. A Financial Times dispatch to the Post reports that longer-term inflation expectations remain stable, but markets fear the Iran oil shock will trigger more spending on top of rapidly expanding deficits and debt, which is resulting in a higher term premium for bonds. Last year, driven by government borrowing, total global debt levels rose at the fastest pace since the pandemic surge, to a record $348-trillion (U.S.), which is more than three times global GDP. That leaves very few governments in a position to roll out new stimulus. Central banks are in a similar bind. In recent decades they have worked alongside governments to extend stimulus at the first sign of trouble, but they cannot do so easily now. The U.S. Federal Reserve has missed its 2-per-cent inflation target every month for 60 months in a row. Lately, three of every four central banks in developed countries and one of two in emerging countries have been missing their targets, too. Even if the oil shock slows economies, central banks may not be able to act as the shock also pushes inflation upward.