Treasuries extended last Friday’s decline, moving markedly lower in Monday trading, according to RTTNews.
Bond prices came under pressure early and stayed negative all day, pushing the benchmark ten-year note yield up 3.8 basis points to 4.758%.
The 10‑year yield built on the previous session’s 4.8‑basis‑point rise, closing at its highest level since early January 2025.
The broader weakness in Treasuries was driven by renewed concerns over a potential flare‑up in the Middle East after a recent period of calm.
During the weekend, the U.S. and Iran exchanged strikes for the first time in more than a month, pushing crude oil prices higher.
U.S. crude oil futures rose about 3% after the United States struck two Iranian rocket launchers on Larak Island, prompting Iran to target two U.S. bases in Jordan.
The sharp rise in oil prices reignited inflation concerns ahead of the Federal Reserve’s upcoming meeting next month.
Fed funds futures now price a 65.9% chance of a 25‑basis‑point rate hike next month, according to CME Group’s FedWatch Tool, after Fed Chairman Kevin Warsh delivered hawkish comments Friday.
