U.S. Treasury yields climbed modestly on Monday as investors reacted to rising tensions between Israel and Iran.
The 10-year Treasury yield moved up to 4.43%, while the 2-year yield rose to 3.969%.
Escalating hostilities — including reported Israeli strikes on Iranian sites and an attack on Iran’s South Pars gas field — lifted oil prices. West Texas Intermediate crude gained about 0.7%, trading near $73.50 per barrel.
Higher oil prices have renewed concerns about inflation as markets head into this week’s Federal Reserve meeting, where policymakers are widely expected to leave interest rates unchanged. Investors will be watching for any signals from the Fed about future policy shifts amid the evolving geopolitical risks and potential inflationary pressure.