Fiscal Jitters Return to Treasuries as Middle East Risks Ease

Bond investors are shifting their focus back to troubling questions about US fiscal risks, after a ceasefire between Israel and Iran cleared a stormcloud hanging over global markets.

President Donald Trump’s announcement of a ceasefire in the Middle East led to clear moves across markets on Tuesday, pushing stocks and risk-sensitive currencies like the Australian dollar higher while gold and the dollar fell. One outlier: Treasury yields, which barely budged as investors turned their attention back to a series of conflicting signals coming from the world’s largest economy.