US Treasury yields rose to year highs as oil rallied on threats of escalation in
the Iran conflict, prompting markets to price a possible Fed rate increase as
soon as next week. The 2-year yield, most sensitive to Fed policy bets, gained
about 4 bps to roughly 4.34%, its highest since early 2025. The 10-year hit a
year high and the 30-year climbed to 5.19%, just below its highest level since
2007. Brent was edging back toward $100/bbl after Houthi militants said they
struck a commercial vessel for the first time in months. The oil-driven move
kept pressure on the Treasury market and raised odds of an earlier Fed hike this
year.
