Time to read the crystal ball that is the U.S. bond market. From Marketplace, I'm Sabri Benishore,

in for Kimberly Adams. The U.S. and Iran traded new attacks since the president said the ceasefire

was over. Oil prices surged yesterday, but have come off those highs ever so slightly. Shipping

through the Strait of Hormuz is just about completely frozen.

Jane Foley is here to talk about it. She's head of foreign exchange strategy at Rabobank in London.

Welcome. Thank you for having me.

So generally speaking, what is the markets take on this eruption of hostilities?

Well, of course, we are called back to watching that oil price, and we did see it declined

this morning after yesterday's increases.

So that means that this morning, well, some of that sentiment or some of those fears yesterday

have eased back.

And that means that the market has taken the additional conflict that we've seen from both

sides yesterday in the Middle East as really a maneuver to get more power at the negotiating table.

It seems that Trump really does want to assert U.S. influence, give a very strong signal to Iran,

that they cannot dominate the

Strait of Hamas. Treasury yields, one reason we are always talking about them, is they reflect

what investors think the future is going to be like, specifically inflation and where

interest rates in the economy are going to be.

Yields on the 10-year have gone up.

So what does that mean?

Well, yesterday's move, yes, that was in response to that move higher that we had yesterday in all prices.

Clearly, all prices go up.

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