PANews reported on March 23 that, according to Zhitong Finance, concerns about stagflation triggered by the Iran war have led to a loss of over $2.5 trillion in global bond value in March, poised for its biggest monthly drop in over three years. Bond prices plummeted as soaring oil prices accelerated inflation expectations. While the decline in bond market value was less than the approximately $11.5 trillion loss in global stocks, it was still unexpected, as bonds typically rise during periods of geopolitical turmoil. Data shows that the total market capitalization of government, corporate, and securitized bonds has fallen from nearly $77 trillion in February to $74.4 trillion, on track for its biggest drop since September 2022, when the Federal Reserve was in the midst of a major interest rate hike cycle. In percentage terms, this indicator has fallen 3.1% this month. Government bonds led the decline, with the Bloomberg Sovereign Securities Index falling 3.3% in March and the Corporate Bond Index falling 3.1%. After three consecutive weeks of declines, US Treasury yields rose to their highest levels in months, fueling market speculation that the Federal Reserve may have to raise interest rates to combat inflation. In Asia, government bond yields in India, Japan, and South Korea all rose. Australian 10-year yields climbed to their highest level since 2011 on Monday, while New Zealand government bond yields hit their highest level since May 2024.