U.S. Treasury yields keep rising… “Safe-haven buying won’t last long even with Middle East risks”
Summary
- U.S. Treasury yields extended their rise during Asian trading hours.
- Markets are watching whether a broader Middle East conflict could lift global oil prices and stoke inflationary pressures.
- The safe-haven bid for bonds was short-lived, with the tone reversing as yields surged again.
Forecast Trend Report by Period
U.S. Treasury yields extended their advance during Asian trading hours, underscoring how inflation concerns stemming from conflict in the Middle East are weighing on markets.
According to crypto-focused outlet Odaily on the 3rd, U.S. Treasury yields edged higher after surging the previous day. Markets are focused on the risk that a wider Middle East conflict could push up global oil prices and intensify inflationary pressures.
In the previous session, the U.S. Treasury market briefly saw buying on safe-haven demand, but the move reversed as yields jumped again.
Padhraic Garvey and Michiel Tukker, rates strategists at ING in the Netherlands, wrote in a report that “it is honestly surprising that the safe-haven flows into bonds ended so quickly.” They added that “if the situation in the Middle East deteriorates further, demand for safe havens could flare up again,” while noting that “a sizeable follow-through reaction after the initial shock has already been seen.”
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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