Treasuries Rout Shows Iran Conflict Reigniting Inflation Worry

Inflation is re-emerging as the crucial worry in the $30 trillion Treasuries market as investors see the risk of a protracted conflict in the Mideast that keeps crude prices elevated.

For weeks, haven buying was the dominant driver of US government bonds. Treasuries just logged their best month in a year as investors sought shelter from losses in stocks and fretted about mounting tensions between the US and Iran.