U.S. Treasury Yields Retreat as Market Weighs Economic Growth Against Inflation Risks

Odaily News U.S. Treasury yields continued to retreat from their highs. Investors are gradually shifting their focus to the risks to economic growth from the Middle East conflict and inflationary pressures. Soaring energy prices have sparked inflation concerns, prompting the market to significantly scale back expectations for U.S. interest rate cuts. However, the Federal Reserve will have to balance growth risks against inflation risks. Konstantinos Chrysikos of Kudotrade stated in a report that a series of U.S. economic data to be released this week, including Friday's non-farm payrolls data, will be crucial for shaping monetary policy expectations. Tradeweb data shows that the yield on the two-year U.S. Treasury note fell by 2.3 basis points to 3.893%; the 10-year yield fell by 4 basis points to 4.400%. (Jin10)