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A sharp repricing in sovereign debt swept across major markets on Tuesday as U.S.-Iran hostilities revived fears of an energy-driven inflation surge.
Japan and the United Kingdom saw yields climb to levels not reached in decades, pulling the global rate environment into focus at a moment when central banks were already navigating a fragile disinflation path.
The move was sector-wide and simultaneous.
When geopolitical friction in the Middle East threatens energy supply, the inflation pass-through arrives in bond markets before it clears the commodity floor, and Tuesday's session followed that sequence closely.
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