Iran War Threatens to Wreck Trump Dream of Lower Interest Rates

Bloomberg.com • March 31, 2026 • business

Key Points:

10-year US Treasury yields are set for their largest monthly increase since Donald Trump's presidency, signaling investor concern amid ongoing economic challenges.
Treasury Secretary Scott Bessent remains optimistic, stating that the global oil deficit caused by the Iran war is being managed and expects crude oil prices to decline within months.
Despite a recent rally in government debt, 10-year yields have risen 35 basis points this month, driven by inflation risks linked to higher energy costs.
The rise in yields also reflects reduced expectations for Federal Reserve interest-rate cuts in the near future, adding uncertainty to the economic outlook.