Global bond sell-off deepens as Strait of Hormuz closure keeps borrowing costs elevated
Markets are continuing to price in higher borrowing costs for governments as tensions in the Middle East keep energy prices elevated. The latest analysis says the closure of the Strait of Hormuz and renewed hostilities between the United States and Iran are feeding expectations of higher inflation and interest rates across major economies. That has added fresh pressure to government bond markets already under strain from heavy issuance and persistent fiscal concerns.The report says the immediate market response is being driven by the assumption that oil and gas prices will stay higher for longer, rather than ease as some investors... [Continue Reading]
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