US President Trump rejects Iran proposal, oil price hike triggers US bond sell-off

US President Trump rejected Iran's proposal to reopen the Strait of Hormuz. Oil prices rose and US treasury bond bonds resumed selling. The yield on two-year US Treasury bonds increased by 5 basis points to 4.90%, while the yield on 10-year bonds increased by 4 basis points to 5.20%. Japanese and Australian sovereign bonds fell. Damian McColo, head of fixed income research at Western Pacific Bank, stated that the Fed's hawkish signals and the maintenance of oil prices above $100 per barrel are factors driving the market's bearish view on bonds. (Source: Jin Shi)