Global Bond Markets Plummet Over War Shock

Government bond markets fell all over the world, sending yields surging from Japan to the US on intensifying fears that the Iran war-driven price shock will force central banks to raise interest rates to contain the impact.

The selloff came as crude oil prices climbed and the US-Chinese summit failed to deliver any breakthroughs toward ending the conflict. That’s compounding worries sparked by back-to-back US government reports that revealed a sharp rise in consumer and wholesale prices, fueling speculation that the Federal Reserve and other central banks will need to shift to tightening monetary policy.