SINGAPORE: Investor fears of a drawn-out Middle East conflict triggered a rush into U.S. Treasuries on Monday, in a broad risk-off move that pushed yields to multi-month lows.
The benchmark 10-year yield fell to an 11-month low of 3.9260% early in the Asian session, while the two-year yield slipped to 3.3650% - its lowest since August 2022, before recovering slightly.
Bond yields move inversely to prices.
Israel launched a new wave of strikes on Tehran on Sunday, and Iran retaliated with more missile barrages, a day after the killing of Supreme Leader Ali Khamenei pitched the Middle East and the global economy into deepening uncertainty.
"While yields are falling on risk-off sentiment this morning, all of the above is inflationary, just as it was when Russia invaded Ukraine," said analysts at Rabobank in a note. - Reuters
