The main shift that will reshape financial markets for the foreseeable future is the conflict between the US and Iran. This turned out to be not a short-term military event as the US is moving troops for a ground operation. It’s hard to estimate the effects for all instruments, but prices of crude oil futures have held above $100, and that boosts inflation expectations around the world. The immediate reaction by bond markets to this escalation was the growth of US 30-year Treasury yields and the “flight to safety” regime across all markets. According to CME FedWatch, rates in the US are expected to stay unchanged ... (full story)