Treasuries Eye Biggest Drop In Two Weeks on Fed Rate-Hike Bets

Treasury yields surged, marking their steepest decline in over two weeks, as heightened US-Iran tensions pushed up oil prices and intensified speculation about a potential Federal Reserve interest rate hike. This shift reflects growing investor anxiety over geopolitical risks and their potential economic impact, underscoring the interconnectedness of global markets and monetary policy decisions. The market's reaction underscores the Fed's sensitivity to both economic data and external geopolitical factors in shaping its monetary policy strategy.