Bonds Only Modestly Weaker After New Escalation Over The Weekend

Heading into the weekend, all indications were about as promising as they have been that the war was heading toward a peaceful conclusion. This was reflected in oil prices and Treasury yields being at multi-week lows (and stocks at all-time highs). But over the weekend, the U.S. fired on and seized an Iranian ship, and Iran said it was cancelling plans to re-open the Strait of Hormuz. Oil prices retraced almost all o…