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

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