U.S. Treasury yields rise slightly as investors assess geopolitical risks
The entire U.S. Treasury yield curve moved higher on Tuesday. While investors are analyzing the escalating tensions in the Middle East, they are also paying attention to news that relevant parties have begun mediation and seeking a ceasefire. The yield on the 10-year U.S. Treasury note, a key benchmark for U.S. financing, rose more than 3 basis points to touch 4.63%. The 2-year U.S. Treasury yield is more closely linked to the Fed's short-term interest rate policy, rising 3 basis points to 4.245%; the long-term 30-year U.S. Treasury yield rose more than 2 basis points to 5.141%. 1 basis point equals 0.01%; bond yields move inversely with prices. U.S. 10-year Treasuries: 4.626%, up 0.028 U.S. 1-month Treasuries: 3.698%, up 0.002 U.S. 1-year Treasuries: 4.065%, up 0.034 U.S. 2-year Treasuries: 4.253%, up 0.038 U.S. 30-year Treasuries: 5.131%, up 0.013 U.S. 3-month Treasuries: 3.823%, up 0.003 U.S. 6-month Treasury bonds: 3.981%, up 0.013 BMO Capital Markets said: Although the conflict in the Middle East has escalated again, the news that the mediators have proposed a new round of ceasefire plans has caused oil prices to cool down, and the U.S. debt market as a whole has remained relatively stable. However, analysts caution that there are few major U.S. economic data this week, and the Treasury market is vulnerable to sharp fluctuations in oil prices and new developments in the U.S.-Iran conflict, and there is a risk of sudden changes in the market. Bank of Montreal strategists pointed out: "The market continues to focus on the energy sector and geopolitical conflicts, which will limit the downside of nominal yields." The strategists also mentioned that investors need to wait until the release of inflation data in July and August to judge whether the inflationary pressure driven by energy has peaked. In the UK, new Prime Minister Andy Burnham stated that he would flexibly adjust policies within the fiscal framework. Affected by this, the 10-year UK government bond yield rose on Monday; the 10-year UK bond yield continued to rise slightly on Tuesday. Investors will pay attention to the S&P Global Flash U.S. Purchasing Managers Index (Flash U.S. PMI), which will be released this Friday. This indicator is used to measure the prosperity of the U.S. manufacturing and service industries.