U.S. Treasury Yields Edge Higher on Rising Oil, Dollar Eases Ahead of Fed -- Market Talk

0959 GMT - U.S. Treasury yields rise as fresh military escalation in the Middle East causes oil prices to rise. The dollar weakens slightly meanwhile ahead of the Federal Reserve's rate decision later. "Yields could climb further if energy prices increase significantly amid any sustained escalation in geopolitical tensions in the Middle East," says BankPro's Paolo Broccardo in a note. Any indication about inflation concerns could support hawkish expectations and lift the dollar and yields, while a surprise or strong dissent could also affect sentiment and fuel volatility, he says. The Fed is expected to stay on hold but a hike can't fully be ruled out. The 10-year yield is up 1.8bps at 4.622%, according to Tradeweb. The DXY dollar index falls 0.1% to 101.363. (emese.bartha@wsj.com)

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July 29, 2026 05:59 ET (09:59 GMT)