Analyst: If the Middle East situation thaws, U.S. Treasury yields are expected to drop to 4.2%.

ME News Report, April 3rd (UTC+8), Daiwa Securities strategist Shun Otani stated that if some form of resolution is reached in the Middle East conflict, the US 10-year Treasury yield could fall back from the current 4.30% to around 4.20%. Otani pointed out that once hostilities subside, market focus may shift to ensuring the safe passage through the Strait of Hormuz and repairing the deteriorated relations between Iran and Gulf countries during the conflict. He believes that the meeting of foreign ministers from over 40 countries on the situation in the strait, as well as reports of negotiations between Iran and Oman, can be seen as positive signals toward de-escalation of the situation. (Jin10)(Source: ODAILY)