Svmuu News: As the escalation of the Middle East conflict caused oil prices to spike and triggered inflation concerns, eurozone government bond yields rose alongside U.S. Treasury yields. However, the rise in yields was limited as U.S. and Israeli military strikes against Iran also spurred demand for safe-haven assets. Rainer Guntermann of Commerzbank stated in a report: “So far, the market reaction to the escalation in the Middle East has been relatively orderly.” He also noted that risk aversion could intensify, while the impact of soaring oil prices on German government bonds should be limited. Tradeweb data showed that the yield on 10-year German government bonds rose 1.5 basis points to 2.665%. The yield on 10-year U.S. Treasuries rose 1 basis point to 3.970%. (Jin Shi)