Bonds Slump as Inflation Risk Mounts From War in Iran
Oil price surge is prompting traders to scale back bets on easier monetary policy.
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The Iran war is rekindling inflation concerns across financial markets, sapping the outlook for global bonds after their best start to a year since the pandemic.
Traders are offloading government debt as they game-plan how a prolonged conflict may ramp up oil and supercharge inflation. A sustained oil price shock of $20 a barrel could raise global inflation by as much as 1 percentage point, according to Societe Generale strategists.