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Bond yields edge higher as war headlines drive rate expectations

Iran said it is shifting to an offensive strategy and set a deadline for the U.S. to implement a ceasefire memo, briefly lifting yields earlier in the session.

Reported · Written up by our desk · Economy

Mortgage News Daily reports bond markets are starting the day in slightly weaker territory after war-related headlines increased uncertainty around fuel prices and the path of interest rates. The outlet notes that the morning reaction to several updates around 8:30am was quick, though the immediate move in yields was relatively small.

The most relevant headline for rates came from Iran, which said it was shifting to an offensive strategy and set a deadline for the U.S. to implement a ceasefire memo before escalating. Mortgage News Daily says this triggered a brief pop higher in bond yields at the time.

After that initial move, the report says yields have turned higher again, pressing against longer-term ceilings. By contrast, short-term yields are unchanged to slightly stronger, supported by ongoing Fed rate expectations after last week's inflation data, according to the outlet.

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