Bond markets across the U.S., Europe, and Japan are breaking down while China quietly absorbs the money fleeing them — bad for Western governments and bondholders, good for Beijing.

• The U.S. 10-year yield jumped to 4.6%, levels not seen since before the 2008 crash, and UK and EU bonds are sliding the same way.
• Japan's yen is collapsing despite $63 billion in recent currency support, and the Bank of Japan may be forced to dump U.S. Treasuries to stay afloat.
• Euroclear, a major global settlement company, will start accepting Chinese bonds as collateral — a big step toward putting Chinese debt at the center of the global financial system.
• China has $50 trillion in domestic savings to fund its own bonds, while the U.S. depends on foreign buyers who are now pulling back over inflation and sanctions risk.
• The Iran conflict has added roughly half a percentage point to U.S. bond yields as investors demand a war premium, and Trump's ceasefire offer may hand Iran a better deal than Obama did.

Outlook: Yields likely keep climbing and money keeps rotating into Chinese assets unless the Iran deal closes fast and inflation cools.