U.S. Treasury Yields Rise Amid Middle East Tensions

U.S. Treasury yields experienced a slight increase during the Asian trading session, continuing the trend from Monday. According to Jin10, the market remains focused on the potential inflationary impact of rising oil prices due to ongoing Middle East conflicts. On Monday, U.S. Treasury yields surged significantly, reversing a brief period of safe-haven buying. ING rate strategists Padhraic Garvey and Michiel Tukker expressed surprise at the short-lived nature of the safe-haven flows into bonds. They noted that if the broader Middle East situation deteriorates further, it will undoubtedly reignite demand for safe-haven assets. However, the subsequent reaction following the initial shock has already been quite pronounced.