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US Treasury yields ease after Middle East news boosts Fed rate bets
Yields had earlier reached multi year highs, including 30 year Treasuries at the highest since mid May 2004 and 10 year notes at the highest since mid June 2007.
US Treasury yields inched lower after climbing to multi year highs on Monday, as oil futures pared gains on renewed hopes for Middle East negotiations, according to Reuters. The shift offered some relief for investors focused on stubborn inflation and expectations for further Federal Reserve interest rate increases.
Earlier, yields on 30 year Treasury bonds had hit their highest levels since mid May 2004, and 10 year yields had touched the highest since mid June 2007. Two year yields also reached the highest point since May 2024 before paring gains.
The move was linked to weekend news that US President Donald Trump rejected a peace proposal from Iran to reopen the Strait of Hormuz and end fighting. By late morning, a Reuters official said Qatari mediators were likely to hold separate talks in New York on Monday or Tuesday with Iranian Foreign Minister Abbas Araqchi and with the US side, in a fresh effort to end the war.
After rising more than 4% earlier in the day, US crude oil futures were barely higher by afternoon trading, while traders increased bets that the Federal Reserve will raise rates again by 25 basis points.
Latest closeWTI crude $92.44 ▼2.3%