Global Markets-Bonds, stocks jolted as Middle East tensions shatter market calm
SPY•Treasury yields climb to multi-year highs
Traders see a 34.6% chance of a hike at the Fed's September meeting, lower than 48.4% a week ago, according to the CME FedWatch tool.
But "if things unravel and the conflict escalates, a mid-cycle adjustment would be necessary," said George Bory, chief investment strategist for fixed income at Allspring Global Investments.
The yield on the U.S. 30-year Treasury bond US30YT=RR rose 1.42 basis points to 5.3232%, its highest in almost 20 years. Its 10-year counterpart US10YT=RR traded up 0.99 basis points at 4.7339%. US/
The pressure also spread to other major government bond markets. Yields on Japan's 10-year government bond JP10YTN=JBTC were on the brink of hitting 3% for the first time since the mid-1990s, while euro zone bond yields were hovering at multi-year highs.
