10-year yield hits highest since January 2025 as higher oil prices stoke inflation worries - CNBC
U.S. Treasury yields have reached their highest levels since early 2025 as geopolitical tensions in the Middle East drive up oil prices and inflation concerns. The market is reacting to military strikes in Iran and ongoing instability in the Strait of Hormuz.
Why it matters
Rising Treasury yields directly impact the cost of consumer borrowing, including mortgages and auto loans, signaling broader economic pressure.
U.S. Treasury yields rose on Tuesday as renewed tensions in the Middle East drove global government borrowing costs to their highest point going back to early last year.
The 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — rose more than 3 basis points to 4.792%. The yield hit its highest level since Jan. 14, 2025 earlier in the day.
The longer-dated 30-year Treasury bond yield, which tends to track geopolitical events, was up more than 1 basis point at 5.266%.
The yield on the 2-year Treasury note, which typically moves in line with short-term Federal Reserve interest rate decisions, climbed more than 4 basis points to 4.398%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
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