Report: U.S. Treasury market caught in a dilemma between AI impact and conflict with Iran.

In a report, Lawrence Gillum of LPL Financial stated that the US Treasury market is caught between AI-driven unemployment concerns and ongoing tensions with Iran. The chief fixed income strategist explained that earlier this year, as investors weighed the potential for AI to slow economic growth by replacing labor, US Treasury yields dropped significantly. However, since the start of the Iran conflict, concerns about the impact of rising energy prices on inflation have caused a sharp reversal in US Treasury yields. "AI-driven safety trades were overwhelmed by inflation trades almost overnight, reversing much of the previous decline in yields."