U.S. Treasury bonds are drawing significant safe-haven demand on Thursday as escalating geopolitical tensions in the Middle East heighten risk aversion among traders seeking liquidity shelters.
The iShares 20+ Year Treasury Bond ETF TLT saw a 1% increase, reaching its highest level since March 2024 by 10:45 a.m. in New York. Long-term Treasury bonds are on track for their sixth consecutive session of gains, marking the longest streak since April 2023. Adding to the flight-to-safety sentiment, a trade weighted measure of the U.S. dollar rose.
Concerns over potential conflict in the Middle East between Israel and Iran weighed heavily on market sentiment, reversing Wednesday’s stock market rally driven by Federal Reserve Chair Jerome Powell‘s commitment to a September rate cut.
Economic data released on Thursday indicated cooling labor market conditions ahead of Friday’s jobs report, highlighted by a surge in weekly…
