Over $2.5 trillion has been WIPED from the value of global bonds in March, on track for the biggest monthly loss since September 2022.

Government bonds are leading the sell-off with a -3.3% drop, followed by corporate bonds at -3.1%.

This comes as the combination of slowing economic growth and rising inflation, driven by the oil shock, is raising stagflation fears, the worst-case scenario for both bonds and stocks.

US Treasuries are now on track for the 4th consecutive week of losses, with bond yields in Japan, India, South Korea, Australia, and New Zealand all surging.

Meanwhile, there is a rising possibility that the Fed will hike rates at its April meeting, while the ECB may also consider raising rates as soon as next month if price pressures continue to build.

The bond market is now pricing in stagflation, and the longer the war goes on, the worse it gets.