A well-timed update from the Bank of England’s Financial Policy Committee has stated today that the Iran war is making the UK gilt market particularly vulnerable. In addition to the dim view bond traders take of the Reeves rollercoaster. The committee says the war in general represents a “substantial negative supply shock” to the global economy: “The conflict has made the global environment materially more unpredictable and followed a period in which global risks were already elevated. This increases the possibility of large, frequent and potentially overlapping shocks ​and periods of intense volatility.” [...]