The worst-case scenario of a further escalation in the conflict between the U.S. and Iran appears to have been averted for now, but the relief sell-off in haven assets may drive Treasury yields only so high. The haven trade drove the 10-year U.S. benchmark yield as much as 11 basis points lower during Asia trading Wednesday after Iran fired a volley of missiles on U.S.-Iraqi airbases, in retaliation for an American airstrike that killed a top Iranian general. That flight-to-safety move gave way to a sell-off on hopes of de-escalation, and President Donald Trump’s announcement in the U.S. morning of further sanctions, but no military action, pushed the benchmark to this week’s high, of 1.86%. (Bloomberg) European Central Bank President Christine Lagarde used her first public remarks of 2020 to push for greater coordination between the region’s policymakers, arguing that a joint fiscal push would help jump-start the sluggish economy. The decisions come after a flurry of data at the start of the year that showed a mixed outlook for the 19-nation economy. The eurozone has been mired in a manufacturing slump for more than a year -- most prominently in Germany -- amid uncertainties including the U.S.-China trade war and Brexit. (Bloomberg)   Source: Danareksa Sekuritas Debt Research Photo by Markus Spiske on Unsplash