New York, March 23 (SANA) – Global bond markets have recorded losses exceeding $2.5 trillion this month amid the ongoing US-Israeli-Iranian war, marking the sharpest monthly decline in more than three years.
According to Bloomberg data cited by Al Jazeera, the total market value of government, corporate, and securitized debt fell to $74.4 trillion, down from $77 trillion at the end of February, representing the largest drop since September 2022.
Market analysts attribute the decline to rising inflation driven by higher oil prices, which erodes the value of fixed-income returns. Catherine Rooney Vera, chief market strategist at StoneX, said markets are increasingly pricing in the risk of stagflation, warning that prolonged conflict could push oil prices even higher.
Government bonds led the downturn, with Bloomberg’s sovereign bond index falling 3.3%, while corporate bonds declined 3.1% during the same period.
Despite the losses being smaller than the estimated $11.5 trillion decline in global equities, analysts note the bond sell-off is unusual, as bonds typically gain value during periods of geopolitical instability.
Kh.A
