US Treasury Yields Hit 2026 Highs as Oil Surge Lifts Fed Hike Bets
Updated
Updated · Bloomberg · Jul 23
US Treasury Yields Hit 2026 Highs as Oil Surge Lifts Fed Hike Bets
3 articles · Updated · Bloomberg · Jul 23
Summary
Two-year Treasury yields climbed as much as 7 basis points to 4.37% on Thursday, their highest since early 2025, as traders priced in a possible Federal Reserve rate increase as soon as next week.
Oil-driven inflation fears pushed the broader curve higher too, with the 10-year yield reaching about 4.7%—a 2026 peak—and the 30-year touching 5.19%, near its highest level since 2007.
The move followed rising concern that the Iran war could escalate further, sending crude prices sharply higher and reviving expectations that the Fed may need to tighten policy again.
The latest jump extends an earlier selloff in Treasuries, when Brent crude topped $100 a barrel and stronger-than-expected labor data added to pressure on yields.