U.S.-Israel airstrikes on Iran trigger market fluctuations, U.S. Treasury yields rise slightly

On March 2, according to CNBC, U.S. Treasury yields edged higher on Monday following the weekend airstrikes by the U.S. and Israel on Iran. The benchmark 10-year U.S. Treasury yield rose by 1 basis point to 3.973%, the 30-year yield also increased to 4.645%, and the 2-year yield jumped over 3 basis points to 3.417%.

The airstrikes resulted in the death of Iran’s Supreme Leader Ayatollah Ali Khamenei, with approximately 200 casualties. Iran retaliated with airstrikes on U.S. military bases in the Middle East, killing three U.S. soldiers and injuring five others. President Donald Trump stated that U.S. military operations are “progressing smoothly” and warned that the conflict could last about four weeks, with potential further casualties.

On the economic front, investors are paying close attention to upcoming releases of the February employment report, January retail sales, and unemployment rate, while also monitoring the ISM manufacturing index and ADP employment data. Analysts note that geopolitical risks may cause short-term government bond yields to fluctuate and influence global financial markets’ risk aversion. The situation has also heightened market focus on the potential macroeconomic and capital flow impacts of U.S. military actions and Middle East tensions.