U.S. Treasury yields fell, and the market is focused on economic growth and inflation risks

According to Jinshi, U.S. Treasury yields continue to decline from their highs, with investors gradually shifting their focus to the risks of the Middle East war on economic growth and inflationary pressures. The surge in energy prices has raised concerns about inflation, prompting the market to significantly lower expectations for a U.S. rate cut.

Konstantinos Chrysikos from Kudotrade stated that a series of U.S. economic data released this week will be crucial for shaping expectations around monetary policy. Tradeweb data shows that the two-year U.S. Treasury yield fell by 2.3 basis points to 3.893%; the 10-year yield dropped by 4 basis points to 4.4%.