Geopolitical tension and Federal Reserve officials affecting market chaos
2024-04-04 20:21:35
On April 5th, Israeli Prime Minister Netanyahu announced early this morning Beijing time that he is taking action against Iran and its agents, and harming those who attempt to harm Israel. Due to concerns about intensified geopolitical tensions, US Treasury prices hit a new high in the market. Brent crude oil quickly rose to over $90. In the US market, there was a certain degree of increase in US bond yields, mainly driven by the curve belly. Shortly after 3am Beijing time, the US 2-year to 10-year yield jumped to a daily low after rising in the evening. Despite the rise in oil prices, there was no pressure on US bonds as the stock market quickly recouped the day's gains and investors sought refuge, driving demand for bonds. The price of gold and US stocks were influenced by both the hawkish speeches of Federal Reserve officials Kashkari and geopolitical tensions, ultimately leading to a simultaneous decline in US bond yields and gold prices.
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