IGOV: Bond Sell-Off On Prolonged Energy Issues Is Global As Expected

The iShares International Treasury Bond ETF faces significant downside risk due to high duration exposure amid global inflationary pressures and geopolitical tensions. IGOV's 7.43-year effective duration amplifies capital losses, particularly as benchmark rates rise across the yield curve in response to energy supply shocks from the Hormuz crisis. With over 40%+ EU and 11% Japan exposure, IGOV is vulnerable to inflation-focused central banks, eroding returns.