Analyst: Investors have not rushed to buy traditional safe-haven assets amid the escalating tensions in the Middle East.
Investors' response to the escalating tension in the Middle East remains relatively restrained so far. The 10-year government bond yields in the United States, Japan, and Germany have all increased by no more than 3 basis points, indicating that investors are not rushing to buy traditional safe-haven assets. According to Tradeweb, the 10-year German government bond yield rose by 3 basis points in early trading to 2.555%. The 10-year US government bond yield rose by 2.8 basis points to 4.403%, while the 10-year Japanese government bond yield rose by 1 basis point to 1.401%. Over the weekend, the US attacked three nuclear facilities in Iran. IG analysts stated that there is currently no sign of a large-scale influx of funds into safe-haven assets, as investors are waiting for Iran's next move and hoping for a de-escalation of the situation.
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