Treasury Yields Fall on Retail Sales, Middle East Tension

U.S. Treasury yields fell sharply as weaker-than-expected May retail sales and escalating geopolitical tensions raised concerns about a potential economic slowdown or recession. The 10-year Treasury yield declined to around 4.39%, while the 30-year yield fell to 4.89%, continuing recent downward trends. President Donald Trump intensified his rhetoric against Iran, and the U.S. increased its military presence in the Middle East, heightening fears of a broader conflict alongside Israel. Ongoing missile strikes and evacuation orders in the Israel-Iran conflict added to market volatility. The disappointing 0.9% drop in May retail sales prompted a flight to safe-haven assets like Treasurys. These combined economic and geopolitical factors contributed to a bond market rally and lower yields.