SINGAPORE: Investor fears of a drawn-out Middle ​East ⁠conflict triggered a rush into ‌U.S. Treasuries on Monday, in a broad ​risk-off move that pushed yields to multi-month ​lows.

The benchmark 10-year ​yield fell to an 11-month low of 3.9260% early ⁠in the Asian session, while the two-year yield slipped to 3.3650% - its lowest since August 2022, before ​recovering ‌slightly.

Bond yields ⁠move inversely ⁠to prices.

Israel launched a new wave ​of strikes on ‌Tehran on Sunday, and ⁠Iran retaliated with more missile barrages, a day after the killing of Supreme Leader Ali Khamenei pitched the Middle East and the global economy into deepening uncertainty.

"While yields are falling ‌on risk-off sentiment this morning, all of ⁠the above is ​inflationary, just as it was when Russia invaded Ukraine," said analysts ​at ‌Rabobank in a note. (Reporting ⁠by Rae Wee; ​Editing by Sumana Nandy)