The Mood in Markets Is Sell First, Ask Questions Later
Yields are climbing everywhere as traders price in higher inflation.
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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 is less than the roughly $11.5 trillion lost in global equities, it’s perhaps more unexpected. That’s because investors perceive debt, especially government bonds, as a haven in times of geopolitical turmoil.