U.S. Treasury Yields Rise Amid Inflation Concerns Following Trump's Speech

U.S. President Donald Trump's recent speech, which included a threatening stance towards Iran, has led to a rise in oil prices and heightened inflation concerns, according to Jin10. This development has caused U.S. Treasury yields to increase across the board. The two-year Treasury yield rose by 4 basis points to 3.84%, while the ten-year yield also climbed 4 basis points to 4.36%. The U.S. dollar strengthened against all G10 currencies. Naokazu Koshimizu, a senior rates strategist at Nomura Securities in Tokyo, commented on the situation, noting that Trump's remarks have introduced the risk of prolonged conflict. He highlighted that the resilient U.S. economic data and persistent inflation, combined with geopolitical tensions, might lead the market to bet on further interest rate hikes. This scenario could prompt the Federal Reserve to adopt a more cautious approach towards policy easing.