Treasury yields remained flat despite a faster-than-expected inflation print and ongoing Middle East conflict. Investors await producer price index data, while oil prices dipped amid regional tensions.
US Treasury yields moved lower Wednesday as inflation concerns and Middle East tensions weighed on investors. The 10-year yield was below 4.66%, while oil prices also edged down. Traders await Fed minutes amid hawkish rate expectations.
HSBC warns U.S. Treasurys are in a "danger zone" with surging long-term yields potentially impacting equities and risk assets. The 30-year yield surpassed 5.19%, its highest since 2007, amid fears of sticky inflation and hawkish rate expectations.
China and Japan significantly reduced their U.S. Treasury holdings in March due to the Middle East war's impact on energy prices and local currencies. Other foreign holders also sold, with overall holdings falling, though the UK increased its stake.
