Middle East tensions build ahead of Fed
Investors work at the New York Stock Exchange (NYSE) in New York, USA, on Monday, August 25, 2025. Photographer: Michael Nagle/Bloomberg via Getty Images
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Treasury yields rose slightly on Tuesday as investors weighed rising tensions in the Middle East and rising oil prices ahead of the Fed’s policy decision.
The benchmark 10-year Treasury yield was up more than 2 basis points to 4.239%, while the 30-year Treasury yield was up almost 3 basis points to 4.887%. The 2-year Treasury bond yield was little changed at around 3.686%.
One basis point equals 0.01%, and yields and prices have an inverse relationship.
US President Donald Trump said on Monday that the US wants to postpone a planned meeting with Chinese President Xi Jinping in Beijing “by about a month” due to the ongoing war with Iran.
Trump was expected to go to China at the end of March to meet with Xi.
But when asked in the Oval Office Monday afternoon whether that trip was still going on, Trump said, “I don’t know, we’re working on it right now.”
Oil prices rose more than 3 percent on Tuesday as uncertainty continued over the U.S.-led coalition’s ability to secure shipping through the Strait of Hormuz. Ship movements along the vital shipping route have decreased following Iran’s attacks, fueling one of the largest disruptions to global oil supplies in history.
While the international benchmark Brent crude oil increased by 3.43% to $103.65 per barrel, US West Texas Intermediate crude oil increased by 3.85% to $97.08 per barrel.
The United States is calling on its allies to send military forces to protect tanker traffic in the Bosphorus.
Investors are also turning their attention to the Federal Reserve’s second policy meeting of the year, which concludes Wednesday.
