Bonds Lose $2.5 Trillion in Iran War Wipeout That Mirrors 2022

The specter of stagflation caused by the Iran war has wiped out more than $2.5 trillion from the value of global bonds in March, on track for the biggest monthly loss in more than three years.

Bonds are tumbling as a surge in oil prices quickens inflation, which erodes the value of the fixed payments from debt. While the slide in bonds’ market value is less than the roughly $11.5 trillion lost in global equities, it’s perhaps more unexpected as debt typically gains in times of geopolitical turmoil.