Middle East conflict continues to push up oil prices, US Treasury bonds are being sold off, and yields are rising

Gate News Report, March 9 — As the Middle East conflict shows no signs of easing, oil prices continue to soar, and investors are extending last week’s trend of selling U.S. Treasuries (bonds issued by the U.S. government). Barclays rate strategists Anshul Pradhan and Demi Hu stated in a report that last week, U.S. Treasuries failed to serve as a safe haven because the impact of the Middle East war was more inflationary and related to broader budget deficits rather than a slowdown in U.S. economic growth. The two strategists pointed out that this forced the market to reprice the policy rate path and fiscal risk premiums. With economic data weakening and taking a backseat, the duration of the conflict has become a key factor. According to market data, the two-year U.S. Treasury yield rose 5.9 basis points to 3.611%, and the 10-year Treasury yield increased 5.7 basis points to 4.187%.

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