Bond Yields Surge Past Danger Zone as Iran War Fuels Crisis

What: US Treasury yields surged past **4.46%** on March 27, marking the sharpest bond selloff since April 2025.
Why: The surge is attributed to the escalating tensions between the US and Iran, fueling concerns of a global economic crisis.
Signal: The bond market is now pricing in a Federal Reserve rate hike, a stark reversal from previous expectations of rate cuts.
Target: Investors are bracing for further volatility as the crisis deepens, with the 30-year bond yield climbing to **4.986%**.
Risk: The sharp bond selloff increases the risk of a recession, as higher yields make borrowing more expensive and economic growth more challenging.