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Bond yields slip as U.S. and Iran tensions lift oil prices

Shipping traffic has fallen back to war time lows after a mid-year surge, while 10-year yields struggled near a 4.59 ceiling.

Reported · Written up by our desk · Government Bonds

Bonds opened weaker for the new week as U.S. air strikes in Iran increased in both number and how far inland they reached, and Iran responded by targeting allied positions, Mortgage News Daily said.

The outlet linked the move to oil prices, which rose overnight following the renewed escalation, pulling bond yields lower in turn.

Mortgage News Daily also pointed to a separate market channel, noting shipping traffic has returned to war time lows after a noticeable surge in the second half of June, a shift that has supported higher energy prices.

Despite the volatility, the piece said markets are treating the exchanges as a negotiation strategy for now rather than a sign of sustained escalation, citing that oil has not jumped as much as it would in a perpetual-war scenario and that 10-year yields were still bouncing up against the 4.59 ceiling.

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