Bonds Lose $2.5 Trillion in Iran War Wipeout That Mirrors 2022

Global bonds lost more than $2.5 trillion of value in March, driven by stagflation fears tied to the Iran war and putting the market on track for its biggest monthly loss in over three years. The move implies rising yields, heightened inflation/stagflation risk and a shift to risk-off positioning, with material implications for duration-sensitive portfolios and potential central bank and safe-haven flows.

Analysis

Global bonds lost more than $2.5 trillion of value in March, driven by stagflation fears tied to the Iran war and putting the market on track for its biggest monthly loss in over three years. The move implies rising yields, heightened inflation/stagflation risk and a shift to risk-off positioning, with material implications for duration-sensitive portfolios and potential central bank and safe-haven flows.