Treasuries Rout Shows Iran Conflict Reigniting Inflation Worry

Описание: Inflation is re-emerging as the crucial worry in the $30 trillion Treasuries market as investors see the risk of a protracted conflict in the Mideast that keeps crude prices elevated. For weeks, haven buying was the dominant driver of US government bonds. Treasuries just logged their best month in a year as investors sought shelter from losses in stocks and fretted about mounting tensions between the US and Iran. But on Monday, that flight-to-safety trade evaporated abruptly as the breakout of war in the Middle East over the weekend triggered a surge in oil prices. Investors dumped bonds as climbing crude prices revived concerns over the sticky inflation that big asset managers including BlackRock Inc. and Pimco have been pointing to all along. The result was a complete reversal in sentiment in Treasuries, which slumped the most since October. Yields soared from the lowest levels in months. The two-year yield climbed 10 basis points to 3.48%, while the 10-year rate rose roughly the same amount to 4.03%. Meanwhile, traders pared bets on how deeply the Federal Reserve will lower interest rates this year. Michael Contopoulos, Deputy CIO at Richard Bernstein Advisors, joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec.
--------
Watch Bloomberg Radio LIVE on YouTube
Weekdays 7am-6pm ET
WATCH HERE: http://bit.ly/3vTiACF

Follow us on X:   / bloombergradio  

Subscribe to our Podcasts:

Bloomberg Daybreak: http://bit.ly/3DWYoAN
Bloomberg Surveillance: http://bit.ly/3OPtReI
Bloomberg Intelligence: http://bit.ly/3YrBfOi
Balance of Power: http://bit.ly/3OO8eLC
Bloomberg Businessweek: http://bit.ly/3IPl60i

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:
Apple CarPlay: https://apple.co/486mghI
Android Auto: https://bit.ly/49benZy

Visit our YouTube channels:
Bloomberg Podcasts:    / bloombergpodcasts  
Bloomberg Television:    / @markets  
Bloomberg Originals:    / bloomberg  
Quicktake:    / @bloombergquicktake