Bond market is ignoring inflation and focus on the war - #bonds

Before the war tensions kicked off about 2 weeks ago, the market story for bonds was that inflation is high and the FED need to raise rates. This help push yields over the 2% mark and the price of bonds to 126 handle. But since then, the bond market has pretty much ignore the rate hike narratives and started to move higher on risk. As of now, things could go either way as a high level meeting between Russia and Ukraine is expected to take place today. Upside evels to watch out for in the bond market would be at 127.70 or 128.60 while downside levels can be found at 126.53 or 126 handle.