U.S. Treasury yields edge higher as Wall Street monitors Middle East tensions
U.S. Treasury yields rose slightly on Monday as Wall Street monitored the latest developments amid rising tensions in the Middle East.
The yield on the 10-year U.S. Treasury note, the key benchmark for U.S. government debt, rose more than 1 basis point to 4.558%.
The yield on the 2-year Treasury note, which more closely tracks short-term Federal Reserve interest rate policy, was generally flat at 4.181%. The yield on the longer-dated 30-year Treasury note rose more than 1 basis point to 5.078%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
US Central Command completed its ninth consecutive evening strike against Iran at 10 pm ET on Sunday, Centcom said. In a post on X.
The three-hour drill targeted Iranian military command centers, air defense and coastal surveillance sites, maritime capabilities, and missile and drone launch sites. Centcom said the operation was aimed at further reducing Tehran’s ability to attack commercial ships and civilian sailors passing through the Strait of Hormuz.
US attacks have increased in recent days, and Tehran has reported attacks on civilian infrastructure. Bonji desalination plant Approximately 10,000 people had their water supplies cut off.
Tehran has retaliated with new attacks on targets across the Gulf in neighboring countries, including Bahrain, Saudi Arabia and Jordan. The Kuwaiti military said on Monday that its air defense systems Preventing “hostile” drone attacks from Iran.
Treasury yields fell last week as investors digested a barrage of data showing the U.S. economy continues to withstand inflationary pressures caused by the Iran war.
Last week’s drop in borrowing costs came after cooler-than-expected producer and consumer price data; Unemployment claims in the US for the week ending July 11 came in lower than expected, with a seasonally adjusted 208,000.
On Friday, investors will watch the latest S&P Global Flash US PMI report, which measures the economic health of American manufacturing and services sectors.
— CNBC’s Anniek Bao and Sean Conlon also contributed to this report.
