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UBS analysts are urging investors to load up on short- and medium-maturity bonds, arguing that the front end of the yield curve offers a compelling income buffer even as long-dated government debt suffers its worst selloff in nearly two decades.

Emerging-market corporate borrowing costs have fallen to their lowest level since January relative to US peers, as global bond investors chase yield amid the prolonged closure of the Strait of Hormuz, according to Bloomberg.

Euro zone and U.S. government bond yields closed out July with their largest monthly increases since March, as intensifying Middle East conflict, surging oil prices, and hawkish central bank signals combined to drive a broad selloff across global fixed-income markets.

Saudi Arabia's central bank has withdrawn billions of dollars from at least two international asset management firms in recent months, according to a report by Bloomberg, marking a shift toward a more selective approach to managing the kingdom's overseas reserves.