CNBC host Jim Cramer said Thursday that the Pentagon’s reported move to send a third aircraft carrier strike group and up to 10,000 more troops to the Middle East will be tough on bonds.
The Market Didn’t Price in
Cramer said on X that markets hadn’t priced in a third aircraft carrier and 10,000 troops heading to the Middle East, at least not until after the midterms in November.
“Tough for bonds to rally with this latest news.”
Brent crude is up more than 40% from its late-June lows amid the U.S.-Iran standoff, and a prolonged conflict threatens to keep energy prices and inflation elevated, pressuring bonds further.
The Troop Buildup and Trump’s Rejected Ceasefire
The Pentagon is sending the additional carrier group and Marine expeditionary unit as President Donald Trump considers resuming strikes on Iran after the midterm elections, The Wall Street Journal reported, citing U.S. officials.
The ships, jet fighters, Marines and sailors are expected to arrive by the end of November.
The deployment comes as Trump rejected Iran’s latest proposal for a seven-day ceasefire.
In an interview with TIME, Trump said the offer was “just not good enough,” adding that he’s already “destroyed” Iran’s navy, air force and nuclear capability.
When asked whether he might resume bombing after the midterms, he said it was”possible.”
The White House did not immediately respond to Benzinga’s request for comment.
Bonds Are Already Under Pressure
The 10-year and 30-year Treasury yields have climbed to their highest levels since 2002 this week.
Bond markets have been under pressure for months. The Treasury bought up to $6 billion of 10- to 20-year bonds in Thursday’s liquidity-support buyback, triple the $2 billion ceiling in place before September.
At the time of writing, Brent crude was down 0.31% to $101.99 a barrel, and WTI futures were down 0.53% to $92.39.
Price Action: Shares of the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) slipped 0.01% Thursday to close at $89.30, then edged up 0.01% to $89.31 after hours. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) fell 0.09% to close at $77.71 and dipped another 0.1% to $77.70 in extended trading.
Benzinga Edge rankings indicate that the iShares 7-10 Year Treasury Bond ETF has a Momentum score in the 26th percentile and a negative price trend across the short, medium, and long term.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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