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2026-09-02T08:54:52.000Z

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Global bonds fall amid US-Iran tension

Global bonds fall amid US-Iran tension

Global bond markets have experienced a significant sell-off, with UK government bond yields reaching their highest level since 2008 amid fears of inflation and rising deficits. Tensions between the US and Iran, including military exchanges, have increased oil prices and expectations that central banks will raise interest rates. This has heightened borrowing costs for the UK government, constraining fiscal flexibility ahead of John Healey’s upcoming budget announcement.

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