Bonds’ Oil-Driven Selloff Stalls as Growth Concerns Return

Treasuries wiped out an early slump as investor focus turned to the risk that surging energy prices will become a drag on economic growth.

Yields were lower by about a basis point at 3:45 p.m. in New York after erasing increases of six to seven basis points. They had risen along with oil benchmarks after US President Donald Trump took a threatening tone toward Iran in a speech.

The US war on Iran has disrupted oil supply from the region, causing prices to rise more than 50%. The prospect that higher US inflation via gasoline prices will keep the Federal ...