In our latest Strategas Fixed Income Update, Tom Tzitzouris breaks down what the recent attacks on Iran mean for global bond markets. Tom examines past geopolitical precedents, the potential impact on yields and term premium, and how Strategas’ portfolios are positioned amid renewed volatility—favoring quality duration and selective credit exposure as risk premia adjust.

Definitions: 

Bond yield - A bond yield is the annualized return an investor receives from holding a bond, usually expressed as a percentage of its current price.

Fed funds rate - The fed funds rate is the interest rate at which banks lend reserve balances to each other overnight, set as a target range by the Federal Reserve.

Treasury curve - The Treasury curve (yield curve) is a graph showing the interest rates of U.S. Treasury securities across different maturities, from short‑term to long‑term.

Curve steepener - A curve steepener is a strategy or market condition where long‑term Treasury yields rise relative to short‑term yields, increasing the slope of the yield curve.

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