No signs of easing in the Middle East crisis, investors continue to sell off U.S. Treasuries

CoinNetwork

News from the finance sector indicates that 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 US Treasuries. Barclays rate strategists Anshul Pradhan and Demi Hu stated in a report that last week, US Treasuries failed to serve as a safe haven because the impact of the Middle East war was more inflationary and contributed to a broader budget deficit rather than slowing US economic growth. These two rate strategists noted that this has forced the market to reprice the policy rate path and fiscal risk premiums. “In the context of weak economic data taking a backseat, the duration of the conflict has become the key factor.” According to Tradeweb data, the yield on the two-year US Treasury rose 5.9 basis points intraday to 3.611%, while the 10-year Treasury yield increased 5.7 basis points to 4.187%.

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