Global bond markets finally found their footing last week, and currency markets followed suit.

The relentless sell-off in government bonds worldwide remained the dominant force in financial markets last week.

The steady grind higher in bond yields worldwide continues to be the central development for financial markets.

The Federal Reserve's September meeting delivered an interest rate hike and unmistakably hawkish message last week, making it clear that the central bank is squarely focused on bringing down inflation.

US inflation for July came out exactly as expected last week - other than that, there was little news elsewhere to move markets.

The Iran war has dragged on for longer than markets had anticipated in the spring, which is creating a challenging backdrop for emerging market currencies.

Markets are finally beginning to take notice of the renewed US-Iran hostilities and surge in oil prices, which last week jumped back above $100 a barrel.

The latest flare up in tensions between the US and Iran failed to trigger any significant safe haven flows in currency markets, or in any financial markets for that matter.

A pull back in risk sentiment saw stocks markets drop globally last week, led by the big winners of the last few years, technology companies.

The Fed, now under the stewardship of the new chair Kevin Warsh, seems considerably more concerned about inflation than markets expected, if his first press conference at the helm is anything to go by.

Investors will be forgiven for having half an eye on the sports pages this month as the 2026 FIFA World Cup kicks off, bringing the usual mix of drama and excitement. That said, financial markets are set to serve up a spectacle of their own.

Financial news last week was dominated by the sharp sell off in bond markets worldwide.