Global Bonds Slide as Failure of Talks Adds to Inflation Fears

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The 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.