A resilient U.S. economy and Middle East tensions are driving investors toward the dollar and away from longer-dated Treasuries, as stronger growth and higher energy prices fuel expectations of additional Federal Reserve rate hikes. The 10-year real yield recently climbed above 2.3%, its highest in more than a year, reflecting bets that monetary policy will stay restrictive. Some asset managers are funding bullish dollar positions by shorting the euro and yen, while preferring European or U.K. bonds over long-term U.S. debt. Speculative traders now hold their largest net long dollar bets since 2015, exceeding $40 billion. Attention this week turns to U.S. inflation data and Fed Chair Kevin Warsh's congressional testimony, with markets pricing roughly 40 basis points of tightening by year-end.