US 10-year Treasury yield rose above 4.75% on Monday, the highest since January
2025, as higher oil prices lifted expectations for further Fed tightening.
Yields across the curve advanced; the 5‑year hit its highest level since early
last year. President Trump told Fox News the US would respond further to Iran’s
attack on US forces; the comment coincided with the move. The rise extended a
multi‑day Treasury selloff as investors weigh rising government debt concerns
and how large Fed rate moves must be to rein in inflation. Fed Chair Kevin
Warsh’s Jackson Hole remarks last Friday, which signaled an increased likelihood
of further hikes to contain price pressures, pushed short‑term yields sharply
higher. The 30‑year yield gained about 5 bps to near 5.26% on Monday, still
below mid‑August multi‑year highs; the Treasury said earlier this month it would
increase buybacks of that maturity to support market value.
