The Middle East crisis shows no signs of abating, and investors continue to sell off US Treasuries.

With no signs of easing in the Middle East conflict and oil prices continuing to surge, investors continued last week's trend of selling US Treasuries. Barclays interest rate strategists Anshul Pradhan and Demi Hu stated in a report that US Treasuries failed to serve their safe-haven function last week because the impact of the Middle East wars was more geared towards inflation and broader budget deficits than towards a slowdown in US economic growth. The two interest rate strategists said this forced the market to repric the path of policy rates and fiscal risk premiums. "With weak economic data taking a backseat, the duration of the conflict becomes crucial." According to Tradeweb data, the two-year US Treasury yield rose 5.9 basis points to 3.611%, and the 10-year Treasury yield rose 5.7 basis points to 4.187%. (Jinshi)