Middle East tensions reignite inflation concerns; U.S. Treasuries sold off, two-year yield rises to one-week high.

Zhitong Finance APP has learned that with news emerging about the possible further escalation of the Middle East conflict, international oil prices rose rapidly, triggering market concerns that global inflationary pressure may intensify again. U.S. Treasuries were sold off on Wednesday, with yields across maturities generally climbing, and short-term Treasury yields rising particularly noticeably. At the same time, the U.S. dollar strengthened, reflecting that investors are reassessing the potential impact of geopolitical risks on inflation and the Federal Reserve's monetary policy.