STAGFLATION IS ALSO THREATENING THE UNITED STATES 3/3

The Middle East conflict has overturned the 2026 bond outlook, abruptly ending the downward trend that saw 10-year U.S. Treasury yields hit a yearly low of 3.93% in February. As inflation expectations pivot toward a 3.5%–4% range, the 10-year yield has surged to 4.46%, with technical resistance levels suggesting a potential climb toward the 4.8%–5% mark. This rapid repricing has effectively erased short-term prospects for capital gains, forcing a strategic shift toward shorter maturities and reduced portfolio duration.