War Cost Sinks Long-Term Government Bonds on Deficit Worries

 

Investors are growing worried that the Iran war will drive up expenditures and swell budget deficits in countries around the world, sparking a selloff in long-term government bonds.

The move has driven the 30-year Treasury yield to close to 4.90%, the highest in a month, as markets already worrying over oil-driven inflation fret governments will need to borrow more to pay for defense spending and to shield households from higher energy costs.

https://www.bloomberg.com/news/articles/2026-03-12/war-spending-sinks-long-term-government-bonds-on-deficit-worries