Risk Indicator: Neutral

Another jump in oil prices driven by the escalating Iran war sent global stocks, bonds and metals lower, as concerns grew that central banks may need to tighten policy to contain inflation.

Short-dated bonds led declines on expectations European central banks could be forced to hike while the Federal Reserve stays on hold this year. The yield on two-year Treasuries rose as much as 18 basis points to 3.95% before trimming gains. Losses were sharper in Europe, with UK two-year yields jumping 30 basis points to 4.39%.