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Iran Shock ‘Long-Term Bullish’ for Treasuries, BMO’s Lyngen Says

Ian Lyngen, head of US rates strategy at BMO Capital Markets, says lower rates remains his base case for US Treasuries, while the 2-Year sector will “continue to struggle.” (Source: Bloomberg)

Mar 19, 2026 &03001919202631; 14:00 UTC feeds.bloomberg.com Trending 5/5

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Neutral impact

Sentiment score: 0/100

Moderate impact Long-term (months)

WHAT THIS MEANS

The news from Bloomberg indicates that Ian Lyngen of BMO Capital Markets views the Iran shock as long-term bullish for US Treasuries, suggesting lower rates as his base case, which could lead to increased demand for safe-haven assets. However, he notes potential struggles in the 2-Year Treasury sector, introducing some uncertainty amid broader market dynamics. Overall, this reflects a cautious optimism for bonds, but investors should consider if geopolitical risks are already factored into current prices.

AI CONFIDENCE

50% Moderate

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

↓

10-Year Treasury Yield

^TNXBond

Expected to decline

The analyst's view on the Iran shock as bullish for Treasuries may lead to lower yields due to safe-haven demand, though market pricing and macro headwinds like inflation could temper this effect.

PRICE HISTORY

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⚡ SUGGESTED ACTION

Consider maintaining positions in long-term US Treasuries while monitoring for volatility in shorter-dated bonds; wait for confirmation of lower yields before adding exposure, as the market may have already anticipated such events.

KEY SIGNALS

Geopolitical tensions driving potential safe-haven flows to US Treasuries

SECTORS INVOLVED

Fixed Income

Analysis generated on Mar 22, 2026 at 22:54 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by Bloomberg Markets. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Iran Shock ‘Long-Term Bullish’ for Treasuries, BMO’s Lyngen Says

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