Bonds log biggest selloff in 9 months as Iran conflict sparks unusual Treasury moves

Group 1 - Investors reacted to the Iran conflict by selling U.S. government bonds, leading to a spike in oil prices and fears of inflation resurgence [1][8] - The 10-year Treasury yield surged 9 basis points to 4.051%, marking its largest daily increase since June 6 [2] - The Treasury selloff followed a surprising rally in U.S. government bonds, as investors sought refuge from declines in technology and software stocks [4] Group 2 - Signs of a potential reacceleration in the U.S. economy have emerged, with small-cap stocks outperforming large-cap peers [5] - The ICE BofA MOVE Index, which measures investor anxiety over interest-rate moves, spiked to 73.38, the highest level of the year [7] - The benchmark 10-year Treasury rate briefly dipped below 4%, helping to pull the 30-year mortgage rate below 6% for the first time since 2022 [6]