Escalation in Iran-related fighting and a sharp jump in crude pushed US Treasury
yields higher on Wednesday, ending a three-day decline as markets feared higher
energy costs would add to inflation ahead of the Fed's rate decision later in
the day. The US and Saudi forces struck Iran-backed Iraqi militias — the first
US airstrikes in the Middle East since Trump paused strikes on Iran last week —
while Iran reported attacks on a US base in Jordan and on vessels in the Strait
of Hormuz; Trump vowed retaliation. WTI and Brent rose more than 7% to
$84.00/bbl and $87.81/bbl. The 10‑year Treasury yield rose 2.1bps to 4.625%,
intraday high 4.6387%; the 30‑year rose 0.8bps to 5.104%, intraday high 5.113%.
Market focus now shifts to the Fed policy meeting.
