U.S. Treasury yields rise as inflation and oil price pressures weigh on rate outlook
Bond yields move higher at the start of the week as investors reassess the path for U.S. interest rates amid firmer inflation risks and a fresh jump in energy prices. The move extends Friday’s selloff in Treasuries after a stronger-than-expected May jobs report tempered expectations for near-term Federal Reserve rate cuts.
Highlights
- The 10-year U.S. Treasury yield rises over 3 basis points to 4.5741%, as inflation concerns and Middle East tensions return to focus.
- May payrolls data shows nonfarm payrolls increasing by 172,000 and unemployment holding at 4.3%, signaling labor market resilience and lowering prospects of Fed rate cuts.
- Brent crude jumps 4.3% to $97.14 and WTI futures climb 4.3% to $94.43 after renewed Israel-Iran conflict, intensifying inflationary pressures on the Fed's outlook.
Market drivers behind Monday's yield move
As reported by CNBC, yields increase across the U.S. Treasury curve on Monday as domestic price pressures return to focus and renewed Middle East tensions push oil prices higher.The 10-year U.S. Treasury note yield, a benchmark for mortgages, auto loans and credit card borrowing, rises more than 3 basis points to 4.5741%. The 2-year Treasury note yield, which is more sensitive to short-term Federal Reserve policy expectations, gains 2 basis points to 4.1868%. The 30-year Treasury bond yield also climbs 2 basis points to 5.0282%.
The latest move follows a rise in yields on Friday after May payrolls data shows the unemployment rate holding at 4.3% and nonfarm payrolls increasing by 172,000. The figures signal a resilient labor market and cool traders' expectations for rate cuts under new Federal Reserve Chair Kevin Warsh.
Energy prices and policy outlook in focus
Inflation concerns strengthen further as energy prices jump early Monday after Israel and Iran exchange missile strikes for the first time since the April ceasefire takes effect. Brent crude rises 4.3% to $97.14, while U.S. West Texas Intermediate futures are last up 4.3% at $94.43.Higher oil prices add to concerns that inflation may remain sticky, complicating the Federal Reserve's next policy steps. President Donald Trump says Warsh should do whatever he wants on interest rates, while repeating his preference for lower borrowing costs.
In our earlier article on the renewed Israel-Iran exchange of strikes, we noted that the flare-up put the April ceasefire under strain and complicated Washington’s efforts to keep talks with Tehran alive. We also explained how markets quickly repriced regional risk, pushing Brent crude above $97 a barrel and strengthening demand for safe-haven assets.
Latest Brent News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
