Risk Aversion Outweighs Inflation Concerns, U.S. Bond Yields Decline

Odaily News Despite rising oil prices, U.S. Treasury yields fell during Asian trading hours as bond investors gradually shifted their focus from inflation fears triggered by the Middle East war to growth risks. Elmar Voelker, Senior Fixed Income Analyst at Landesbank Baden-Württemberg, stated in a report that the damage and disruptions suffered in the energy sector so far are likely to have a sustained impact for some time and could spill over into other areas of the economy. The bank expects that, compared to the previous primary scenario, economies on both sides of the Atlantic will suffer a growth loss of approximately 0.25 percentage points this year. Tradeweb data shows that the yield on the two-year U.S. Treasury note fell by 3.9 basis points to 3.875%; the yield on the ten-year U.S. Treasury note fell by 5.2 basis points to 4.387%. (Jin10)