A global firestorm has ripped through bond markets around the world as the escalating war in the Middle East sends energy prices soaring, stoking fears that a fresh wave of inflation will force interest rates higher.
Investors say the violent sell-off underscores a grim new reality: government debt is no longer deemed a haven when price growth is accelerating. As the US and Israel continued to bomb Iranian targets, bond yields surged as traders started to price in the prospect of higher borrowing costs.
