ECB warns investors may be underestimating war (including Iran) and inflation risks, raising risk of sudden, large market repricing; GUINDOS says non-bank financials could amplify shocks. ECB semiannual Financial Stability Review says euro-area sovereign bond market remains orderly with narrow spreads but a rising share of price-sensitive investors (eg hedge funds) and fiscal-sustainability concerns in some countries including the US could trigger or amplify repricing; flags private credit as a

ECB warns investors may be underestimating war (including Iran) and inflation risks, raising risk of sudden, large market repricing; GUINDOS says non-bank financials could amplify shocks. ECB semiannual Financial Stability Review says euro-area sovereign bond market remains orderly with narrow spreads but a rising share of price-sensitive investors (eg hedge funds) and fiscal-sustainability concerns in some countries including the US could trigger or amplify repricing; flags private credit as a financial-stability risk.