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Iran price shock highlights limits of inflation-linked bonds

Inflation-linked bonds — despite the ​promise in their name — have stumbled along with the rest of the bond market as the Iran war drives up prices ‌across the global economy and soaring stocks appear the only game in town. Since the conflict began ​at the end of February, BlackRock's London-listed global inflation-linked government bond ETF has fallen around 2 per cent, according ⁠to LSEG data. That's in line with the drop in the firm's global government bond ETF, while the S&P 500 share index has rallied 7 per cent to hit record highs this week. [...]