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Bond yields surge globally as Iran war triggers inflation fears and tighter credit conditions.

Market News
30 Mar 2026
Piero Cingari
View Source
Bearish
pluang ai news

The Iran war has reignited the bond vigilantes, causing a sharp rise in sovereign bond yields worldwide as investors fear inflation and increased government deficits. Key yields, including the US 2-year Treasury, German Bund, and UK gilt, have surged significantly, signaling expectations of higher interest rates in 2026. While some experts warn this hawkish repricing may be overdone, the market is currently tightening credit conditions, impacting both government and corporate borrowing costs. Investors face a choice between anticipating further rate hikes or a potential market relief if geopolitical tensions ease.

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