Global bond markets experienced another turbulent month in May as the Iran war sparked sharp swings in government borrowing costs, highlighting investor concerns over inflation and mounting fiscal pressures.
According to Reuters, yields on sovereign bonds surged to multi-decade highs during the month as traders reassessed the outlook for inflation and central bank policy amid escalating tensions in the Middle East. However, signs of progress in peace negotiations between the United States and Iran, coupled with weaker-than-expected economic data, later triggered a significant rally in bond markets.
