U.S. Treasury yields rose on Tuesday as President Donald Trump again warned the U.S. would strike Iranian civilian and energy infrastructure if Tehran did not agree to reopen the Strait of Hormuz before a looming deadline.
The 10-year Treasury yield — the benchmark for U.S. government borrowing — was more than 1 basis point higher in early trade, at 4.3466% by 3:40 a.m. E.T.
Yields on the 2-year Treasury note, which are more sensitive to short-term Federal Reserve rate decisions, were also up by 1 basis point, at 3.8622%. The 30-year bond yield, meanwhile, rose 1 basis point, reaching 4.9060%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
The rise in the cost of borrowing followed President Donald Trump’s repeated threat to bomb Iranian infrastructure, including power plants and bridges, if Tehran did not reopen the Strait of Hormuz by 8:00 p.m. ET on Tuesday.
