What's good for the dollar isn't necessarily good for US bonds — yet investors are looking for a compromise. The Zhitong Finance App learned that although the resilience of the US economy and the heightened tension in the Middle East provided support for the US dollar, the same factors are putting pressure on US Treasury bonds. US Treasury yields have remained high due to market concerns that strong economic growth and higher oil prices will drive up already stubborn inflation and prompt the Federal Reserve to raise interest rates.

What's good for the dollar isn't necessarily good for US bonds — yet investors are looking for a compromise. The Zhitong Finance App learned that although the resilience of the US economy and the heightened tension in the Middle East provided support for the US dollar, the same factors are putting pressure on US Treasury bonds. US Treasury yields have remained high due to market concerns that strong economic growth and higher oil prices will drive up already stubborn inflation and prompt the Federal Reserve to raise interest rates.