Middle East crisis shows no signs of easing, investors continue to sell off US bonds

Odaily According to reports, as the Middle East conflict shows no signs of easing and oil prices continue to soar, investors have extended last week's trend by selling off US Treasury bonds. Barclays interest rate strategists Anshul Pradhan and Demi Hu stated in a report that US Treasuries failed to serve as a safe haven last week because the impact of the Middle East war leans more towards inflation and broader budget deficits rather than a slowdown in US economic growth. These two interest rate strategists said this has forced the market to reprice the policy rate path and fiscal risk premium. "With weak economic data taking a back seat, the duration of the conflict becomes key." According to data from Tradeweb, the yield on the 2-year US Treasury note rose by 5.9 basis points intraday to 3.611%, while the 10-year Treasury yield increased by 5.7 basis points to 4.187%. (Jin10)