Government bonds are selling off worldwide and stocks are in the red as investors fret over heavy fiscal spending and inflation.

At the same time, the capital-hungry AI industry has been gobbling up debt, competing with traditional nation-state borrowers and pushing up financing costs.

The 30-year U.S. Treasury yield ticked up again Tuesday, putting it on track for its highest settle since June 2007. Japanese long-dated yields are near an all-time high.

Equities also are struggling, with the Nasdaq down more than 1% amid renewed tensions in the Middle East. An unknown projectile struck a cargo ship in the Strait of Hormuz overnight, the British navy's marine-traffic monitoring agency said.

The attack came after a 60-day truce between the U.S. and Iran expired Monday with few signs of progress toward a permanent deal to replace it. President Trump said he wouldn't seek an extension of the truce and threatened to bomb Oman, which has acted as a mediator between Washington and Tehran.

Brent crude oil prices are hovering around $91 a barrel. Stock markets in Europe and Asia are mostly lower.