Page content
Global debt markets swing between war risks and peace prospects
The Iran war rattled global bond markets throughout May, sending government borrowing costs sharply higher before signs of progress in peace negotiations and weaker economic data helped reverse some of the moves. The sharp swings highlighted investor concerns about inflation, central bank policy, and rising public debt levels. While a lasting end to the conflict could provide immediate relief to bond markets and reduce government borrowing costs, investors remain wary about longer-term economic risks. [...]