Analyst: If Middle East Situation Thaws, U.S. Bond Yields Expected to Drop to 4.2%

Odaily News According to Shun Otani, a strategist at Daiwa Securities, if some form of resolution is reached in the Middle East conflict, the yield on the U.S. 10-year Treasury note could retreat from the current 4.30% to around 4.20%. Otani pointed out that once hostilities subside, the market's focus may shift towards ensuring safe navigation in the Strait of Hormuz and repairing relations between Iran and Gulf states, which deteriorated during the conflict. He believes that the meeting of foreign ministers from over 40 countries regarding the situation in the strait, along with reports of negotiations between Iran and Oman, can be seen as positive signals towards de-escalation. (Jin10)