Bond yields have risen to multi-month highs due to hawkish rate repricing from major central banks amid the Iran war. The two-year Treasury note, which typically reflects near-term rate expectations, had jumped over 20 basis points in the previous session. Despite this, both Germany's and Britain's yields have already risen by 56 bps and 88 bps this month. The dollar was set for a weekly loss of over 1% as investors priced in steeper rate hikes from other central banks compared to the Fed. Despite the recent retreat in oil prices, the market remained volatile, with analysts predicting that even if the U.S. leaves the conflict, Israel might not leave and there may still be strikes and Iran will retaliate.