Analyst: If the Middle East situation eases, U.S. Treasury yields may fall to 4.2%

According to Odaily, Daiwa Securities strategist Shun Otani stated that if a resolution of some form is reached in the Middle East conflict, the US 10-year Treasury yield could fall from the current 4.30% to around 4.20%. Otani noted that once hostilities subside, the market's focus may shift to ensuring the safe passage through the Strait of Hormuz and repairing the deteriorated relationship between Iran and Gulf states during the conflict. He believes that the meeting of foreign ministers from more than 40 countries on the situation in the strait, as well as reports about negotiations between Iran and Oman, can both be regarded as positive signals toward de-escalation. (Golden Ten Data)