US Treasury yields continued to rise, but safe-haven buying was short-lived.

U.S. Treasury yields edged higher in Asian trading, continuing Monday's trend. Markets remain focused on the potential inflationary impact of the Middle East conflict driving up oil prices. On Monday, U.S. Treasury yields surged, reversing a brief period of safe-haven buying. "Frankly, we were surprised by how short-lived the safe-haven inflows into bonds were," said Padhraic Garvey and Michiel Tukker, interest rate strategists at ING, in a report. They noted that further deterioration in the broader Middle East situation would undoubtedly reignite safe-haven demand, "but the follow-up reaction after the initial shock has been quite significant." (Jinshi)