Risk aversion outweighs inflation concerns as U.S. Treasury yields decline

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Odaily Planet Daily News: Even though oil prices are rising, U.S. Treasury yields are still falling during the Asian trading session. The reason is that bond investors are gradually shifting their attention from inflation fears triggered by the war in the Middle East to growth risks. In a report, Elmar Voelker, a senior fixed-income analyst at Baden-Württemberg Bank, said that so far, the damage and disruption suffered by the energy sector may continue to have effects for some time and could spill over into other areas of the economy. The bank expects that, compared with the previously used main scenario, economies on both sides of the Atlantic will each suffer growth losses of about 0.25 percentage points this year. Tradeweb data shows that the two-year U.S. Treasury yield fell 3.9 basis points to 3.875%; the ten-year U.S. Treasury yield fell 5.2 basis points to 4.387%. (Jin Ten)

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