NewsMV
Government bond yields pushed to their highest levels in decades on Tuesday, tracking a move in U.S. Treasuries that the unresolved U.S.-Iran stalemate has kept from retreating.
International sovereign markets followed the U.S. When a geopolitical deadlock sustains risk premiums in Treasuries, the repricing does not stay contained there. The transmission runs in one direction.
The U.S.-Iran standoff keeps pressure on the U.S. International government bonds take their cue from that benchmark.
The result is sovereign yields at generational extremes, a level that means governments refinancing maturing debt are paying rates not seen in decades. The fiscal consequence lands whether or not a government chooses it.
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