Global bonds rose, concerns about economic slowdown intensified.

With concerns over the Middle East conflict potentially dragging down global economic growth on the rise, global sovereign bonds are rising, with government bonds that were previously sold off regaining favor. During the Asian trading session, US Treasuries, along with Australian and Japanese bonds, rose, with the market speculating that the surge in oil prices may be a precursor to long-term global fuel shortages, thus boosting demand for government bonds. Previously, traditional safe-haven appeal of government bonds had been overshadowed by concerns over accelerating inflation and had faced sustained selling pressure. "The market is speculating wildly about what the world will look like if the Middle East conflict remains unresolved in a month," said Gareth Berry, strategist at Macquarie. "People are already starting to compare this situation to the COVID-19 pandemic, with concerns that economies may face the risk of shutdown. Only this time, it's due to fuel shortages." As one of the securities most sensitive to changes in monetary policy, the yield on 2-year US Treasury bonds fell by 3 basis points to 3.88%, having dropped by 7 basis points on Friday. The benchmark 10-year US Treasury yield also dropped by 3 basis points to 4.40%. The yield on Australian 3-year bonds briefly fell by 9 basis points to 4.71%, while the yield on Japanese 2-year government bonds dropped by 2 basis points to 1.36%.