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Long-dated bond yields rise as oil climbs, pressuring rate expectations
The 10-year Treasury yield edged up to 5.8% as Brent futures topped $98 per barrel, intensifying concerns the Fed may need to raise rates.
Stocks fell on Monday as long-dated Treasury yields continued climbing alongside higher oil prices, according to Yahoo Finance. The shift raised renewed concerns that the Federal Reserve could need to hike rates at its upcoming policy meeting next week.
The 10-year Treasury yield ( ^TNX ) crept up to 5.8%, while Brent crude futures ( BZ=F ) moved above $98 per barrel amid ongoing Iran-US tensions in the Middle East.
Goldman Sachs analysts cited a case for oil reaching $120, which the market setup reflected in early trading.
In sector moves, tech stocks rose slightly as Nvidia and other chip names gained, while the Energy sector climbed more than 1%. Financials and consumer discretionary, seen as more sensitive to interest rates, slipped as yields rose.
Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%