Goldman Sachs says US Treasury yields will settle at higher levels than pre‑conflict range in the near term despite lower volatility.
The bank expects medium‑term inflation and labour market outlook could eventually push yields lower, but current policy stability favours carry trades.
Goldman advises swap‑spread longs, volatility selling with hedges, short‑dated gilts in UK, and long‑end Japanese yields as relief valve.
Commodity markets anticipate renewed flow through the Strait of Hormuz, supporting risk‑asset price relief.