Global bond markets saw significant turbulence in May. Geopolitical tensions and inflation worries caused government borrowing costs to surge. The US Treasury market was particularly affected. However, signs of peace progress and weaker economic data later led to a bond market rally. This highlights investor sensitivity to inflation and government debt. The US economy showed resilience, diverging from global trends.

Global markets have spent the past month navigating a challenging combination of rising bond yields, inflation concerns and geopolitical uncertainty. Persistent worries that…

Global bond markets saw significant turbulence in May. Geopolitical tensions and inflation worries caused government borrowing costs to surge. The US Treasury market was…