Treasuries Fall Ahead of Auction as Iran War Stokes Oil Gains

Treasury yields are rising today, signaling a risk-off sentiment in the market as investors prepare for upcoming auctions and react to escalating geopolitical tensions in the Middle East. The potential for an Iran-Israel conflict is driving oil prices higher, which historically puts upward pressure on inflation expectations and, consequently, bond yields. Investors are dumping safe-haven assets in anticipation of more supply at auctions and concerns about inflationary pressures. This could lead to higher borrowing costs for governments and corporations.