Thanks for joining us. Bond markets had their best day in months as the war in Israel pushed investors towards safer assets.
The yield on benchmark 10-year US Treasuries fell 18 basis points to 4.62pc – the most since March – while the two-year bond yield dropped by its most since the end of August.
US bond markets had been closed on Monday for the Columbus Day holiday, meaning that Asian trading overnight was the first chance investors had to put their capital into American debt after the outbreak of the Gaza conflict.
Yields were also boosted by comments from US Federal Reserve officials, which markets interpreted as a sign that interest rates are unlikely to move higher.
Fed Vice Chair Philip Jefferson said Monday that policymakers could “proceed carefully” following the recent rise in Treasury yields, and Fed Bank of Dallas President Lorie Logan said the surge in long-term rates may mean less need for further tightening.
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