At 4.9%, the yield on the U.S. 10-year Treasury note is at least ten basis points higher than where it was a day before Hamas attacked Israel on Oct. 7. In other words, the price of the 10-year note has declined, a sign of investors seeking safety in other assets. Bitcoin has risen 23% to $34,460 since Oct. 7.

“We haven’t seen the flight to quality of flight to safety that you would expect given what’s happening in the world,” El-Erian said, noting the uptick in the 10-year yield since the outbreak of tensions in the Middle East.