Global fixed-income markets paused Monday after a multi-week selloff as investors assessed escalating U.S.-Iran tensions and awaited signals from central bankers. Germany's two-year Schatz yield was flat at 2.838%, the 10-year Bund yield held at 3.256% and the 30-year yield at 3.762%. France's 10-year OAT yield stood at 4.128%, Italy's 10-year BTP yield traded near 4.092% and Japan's 10-year JGB yield hovered at 2.881% after a volatile week driven by Bank of Japan rate-hike expectations. The United States said it would impose new sanctions on foreign nations and trade partners doing business with Iran, describing the action as "the greatest financial offensive ever marshalled." Tehran responded by threatening to halt all energy exports from the Persian Gulf if U.S. economic pressure continued. Traders awaited a 1:00 p.m. EDT press conference by U.S. Treasury Secretary Scott Bessent, while Brent crude fell about 1.5% to around $91.80 a barrel. Restricted tanker traffic through the Strait of Hormuz continued to support a high term premium, or extra yield demanded for longer-dated debt, because of persistent cost-push inflation risks. Markets also remained skeptical of recent U.S. Treasury interventions, including possible expanded buybacks, as gross U.S. national debt crossed $40 trillion and dealer balance sheets faced heavy government and AI-related corporate issuance. Attention now turns to Federal Reserve Chair Kevin Warsh's keynote at the Jackson Hole Economic Policy Symposium on Friday, where traders will assess whether the Fed will hold rates in September after a divided 9-3 FOMC vote or raise rates further into year-end because of energy-driven inflation.