Due to the threat of an escalation in the war in Iran driving up oil prices, U.S. Treasury yields have risen to their highest levels this year, as the market expects the Federal Reserve could raise interest rates as soon as next week. The two-year Treasury yield, which is highly sensitive to Federal Reserve policy expectations, rose about 4 basis points on Thursday to around 4.34%, reaching its highest level since early 2025. The ten-year Treasury yield hit a new high for the year, while the th

Due to the threat of an escalation in the Iran war pushing up oil prices, US Treasury yields have risen to their highest levels of the year, and the market expects that the Federal Reserve could raise interest rates as soon as next week. The two-year Treasury yield, which is more sensitive to expectations of Federal Reserve policy, rose about 4 basis points on Thursday to around 4.34%, reaching its highest level since early 2025. The ten-year Treasury yield hit a new high for the year, while the thirty-year yield rose to 5.19%, just below the highest level since 2007. As the Houthi forces claimed their first attack on merchant ships in months, Brent crude prices are slowly recovering toward $100 per barrel. This increase continues to put pressure on the US Treasury market and has prompted traders to increasingly believe that the Federal Reserve under Walsh’s leadership will raise rates soon this year.