U.S. Treasury Selling Extends as Middle East Conflict Drives Oil Higher, Yields Rise

Investors continued selling U.S. Treasuries last week as the Middle East conflict pushed oil prices higher, Odaily Planet Daily reports. Barclays interest rate strategists Anshul Pradhan and Demi Hu wrote that Treasuries failed to act as a safe haven because the war's impact is viewed as inflationary and tied to wider U.S. budget deficits rather than weaker growth, forcing markets to reprice the policy rate path and fiscal risk premium. They noted the conflict's duration has become a key market focus as soft economic data fades in importance. Tradeweb data showed the two-year U.S. Treasury yield rose 5.9 basis points intraday to 3.611%, while the 10-year yield climbed 5.7 basis points to 4.187%.