Bonds Need To Confirm Stock Optimism

Volatility spiked as war in Iran escalated, driving risk assets down and oil sharply higher before a sudden reversal when presidential rhetoric signaled de-escalation; equities then rebounded rapidly while oil collapsed. Bond markets remained skeptical, limiting decisive safe‑haven moves and leaving markets unsettled with elevated cross‑asset risk and flow volatility.

Analysis

Volatility spiked as war in Iran escalated, driving risk assets down and oil sharply higher before a sudden reversal when presidential rhetoric signaled de-escalation; equities then rebounded rapidly while oil collapsed. Bond markets remained skeptical, limiting decisive safe‑haven moves and leaving markets unsettled with elevated cross‑asset risk and flow volatility.