US Treasury Yields Rise Amid Inflation Concerns Due to Iran Conflict

The yield on the US 30-year Treasury bond has surpassed 5%, driven by heightened inflation fears stemming from the ongoing conflict in Iran. According to NS3.AI, this increase positions the yield just 8 basis points shy of a new 18-year high. Meanwhile, the 10-year Treasury note has climbed to a 9-month high. Current market indicators suggest a 37% likelihood of a Federal Reserve interest rate hike by the end of the year, contrasting with a mere 3% chance of a rate cut.