Borrowing Costs Surge with Iran War

“The Iran war is sending longer-term borrowing costs surging amid prospects for higher inflation, fewer Federal Reserve rate cuts and more federal borrowing,” Axios reports.

“Higher rates create new pressure for an already-faltering housing sector, make the U.S. government’s fiscal challenges worse and could weigh on business investment and consumers alike.”

“It contrasts with past geopolitical tumult, when money frequently flowed into Treasury securities as a safe haven.”