Global Bonds Slide as Failure of Talks Adds to Inflation Fears

MarketsGlobal Bonds Slide as Failure of Talks Adds to Inflation FearsFacebookXLinkedInEmailLinkGiftFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Michael MacKenzieApril 13, 2026 at 12:56 AM UTCBookmarkSaveThe failure of peace talks between the US and Iran is further shifting the bond market’s focus to inflation and reinforcing expectations that interest rates will stay higher for longer.Risk that higher energy costs will add to already elevated price pressures, delaying Federal Reserve interest-rate cuts, is front of mind for investors in the $31 trillion Treasuries complex. Traders and strategists at Pacific Investment Management Co., Brandywine Global Investment Management, and Natixis North America are bracing for yields to remain elevated — and many are reluctant to make big shifts in their allocations until there is greater clarity on the inflation outlook.