Oil price surge sparks stagflation concerns, wiping out all gains in the US Treasury market this year

Golden Ten Data reported on March 16 that as oil prices surged, raising investor concerns about inflation and economic growth risks, the U.S. Treasury market has erased all gains made so far this year. A Bloomberg indicator tracking U.S. Treasury performance has turned negative for the year after falling 1.7% since the end of February. Stagflation fears have pushed yields higher, forcing Wall Street to lower its expectations for U.S. interest rate cuts over the next year. Morgan Stanley strategists, including Bradley Tian, stated: "Energy-driven inflation and policy uncertainty continue to put pressure on long-term U.S. Treasuries." Bonds in the United States, Japan, and Australia have all declined, and a global bond index has also erased its year-to-date gains. Bob Savage, Chief Market Macro Strategist at BNY Mellon, said: "Until the market gains confidence that the Iran conflict is stabilizing, geopolitical uncertainty and increased cross-asset volatility may persist in the short term."