Trump Rejects Iran Proposal, Sending Oil Prices Higher and Reigniting US Treasury Selloff

Odaily News: After US President Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, oil prices rose during Monday's Asian session, intensifying inflation concerns and reigniting a selloff in US Treasuries. The rate-sensitive two-year US Treasury yield rose 5 basis points to 4.90%, while the 10-year yield rose 4 basis points to 5.20%. Sovereign bonds in Japan and Australia also fell.

This comes after US Treasury yields across maturities surged to multi-year highs last week as markets focused on recent Federal Reserve policy remarks and decisions. Damien McColough, head of fixed income research at Westpac, said: "The Fed's continued hawkish signals, along with oil prices holding above $100 per barrel, are key factors driving the bearish sentiment in the bond market." (Jinshi)