U.S. 10-Year Yield Hits 4.788% as Middle East Tensions Lift Oil Above $87
Updated
Updated · CNBC · Sep 1
U.S. 10-Year Yield Hits 4.788% as Middle East Tensions Lift Oil Above $87
3 articles · Updated · CNBC · Sep 1
Summary
The 10-year Treasury yield rose 3 basis points to 4.788% on Tuesday, its highest since Jan. 14, 2025, extending a bond sell-off that also pushed the 30-year yield to 5.272%.
Fresh U.S. strikes on Iran and a tanker hit by unknown projectiles near the Strait of Hormuz drove oil higher—WTI above $87 and Brent above $92—adding to inflation fears and pressuring bonds.
The 2-year yield climbed to 4.362% as investors also weighed uncertainty over the Fed, fiscal concerns and rising AI-linked debt issuance, factors UBS said could keep yield volatility elevated.
Markets are now watching the G20 finance ministers' meeting in Asheville and a run of U.S. data, including ISM manufacturing, JOLTS and Friday's nonfarm payrolls, for clues on the rate path.
How will the unprecedented shift of Treasury holdings to private offshore investors impact the safety of US bonds during this Middle East escalation?
As dark shipping routes dominate the Strait of Hormuz, will hidden transit fees secretly drive up global borrowing costs and crash vulnerable bank stocks?
With 10% of massive tankers trapped, could soaring war-risk insurance trigger a global inflation crisis that pushes mortgage rates even higher?