US Treasury yields hit highs last seen in May 2025 as oil prices jump on Middle East tensions and Donald Trump warning Iran, stoking fears of rising US inflation
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Longer-dated Treasury yields climbed to their highest levels since May 2025 on Friday, as a spike in oil prices stoked fears that ongoing energy disruptions in the Middle East could further fuel inflation — which data this week showed had already surged in April.
Oil prices gained 3% after U.S. President Donald Trump said his patience with Iran is running out, adding to concerns over the lack of progress on a peace deal to end ship attacks and seizures around the Strait of Hormuz.
Investors have already been rattled by strong inflation prints this week showing energy disruptions are being seen in some inflation-based measures. U.S. consumer inflation saw the largest annual gain in three years last month, while U.S. producer prices posted their biggest increase in four years.
Investors have already been rattled by strong inflation prints this week showing energy disruptions are being seen in some inflation-based measures. U.S. consumer inflation saw the largest annual gain in three years last month, while U.S. producer prices posted their biggest increase in four years.
The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, was up 7 basis points at 4.062%. It reached 4.071%, the highest since March 2025.
The yield on benchmark U.S. 10-year notes rose 9.3 basis points to 4.552%. It got to 4.558%, the highest since May 2025.
The 30-year bond yield rose 8.6 basis points to 5.0992%. It reached 5.103%, also the highest since May 2025.
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