Treasury yields move higher as oil prices rise amid U.S.-Iran standoff
Donald Trump is seen on a TV screen below the graph showing the day’s course of the DAX index at the Frankfurt Stock Exchange on November 9, 2016 in Frankfurt, Germany.
Getty Images
Treasury yields rose on Thursday due to escalating tensions between the U.S. and Iran in the Strait of Hormuz, sparking inflation concerns.
The yield on the 10-year U.S. Treasury note increased by more than 3 basis points to 4.325%.
The 2-year Treasury note yield, which closely reflects Federal Reserve interest rate policies, also saw a rise of over 3 basis points to 3.832%. The 30-year Treasury bond yield rose by more than 1 basis point to 4.919%.
It’s important to note that one basis point equals 0.01%, and yields and prices move in opposite directions.
Recent events include the U.S. seizing a sanctioned tanker carrying Iranian oil in the Indian Ocean and Iran’s navy seizing two container ships in the Strait of Hormuz, raising doubts about an existing fragile ceasefire.
Iran’s Revolutionary Guard Navy claimed the ships were seized for maritime violations and taken to Iranian shores. This action followed reports of attacks on vessels in the Strait of Hormuz and President Donald Trump’s extension of the ceasefire with Iran.
However, complications arose as Iran’s parliament speaker resigned from the negotiating team, fueling a rise in oil prices. Brent crude futures closed at $105.07 per barrel, while West Texas Intermediate futures settled at $95.85 per barrel.
— CNBC’s Sam Meredith, Spencer Kimball, and Jason Gewirtz contributed to this report.
