By Emese Bartha and Paulo Trevisani
Long-dated bond yields reached new highs Monday as fresh military escalation between the U.S. and Iran lifted oil prices.
The 10-year Treasury yield traded at 4.764%, on pace for its highest settlement since January 2025. The two-year yield reversed an overnight decline and edged higher, reaching 4.337%.
The moves followed revived hostilities in the Middle East that clouded the long-term economic outlook at a time when markets are bracing for an increase in interest rates by the U.S. Federal Reserve.
The U.S. attacked Iranian rocket launchers Sunday and shortly after defended against missiles launched at Jordan, raising fears of an all-out conflict. Oil prices rose around 3%, rekindling concerns about inflation.
