Lates News

With the tension in Iran once again pushing up oil prices and sparking speculation in the market that the Federal Reserve may need to raise interest rates to curb inflation, the two-year US Treasury yield climbed to its highest level since early 2025. The yield on the two-year US Treasury, sensitive to interest rate changes, rose 3 basis points to reach 4.24%, the highest since February 2025; the benchmark 10-year US Treasury yield also increased by 3 basis points to 4.59%. Swap trading data shows that the market has almost fully priced in the expectation of a rate hike by the Fed in September, compared to about 66% just a week ago. "The market is currently more sensitive to news regarding Iran," said Kenneth Crompton, rate strategist at National Australia Bank. "The market did not anticipate a repeat of the tense situation in March, but due to the ongoing attacks over the weekend and the attacks on Russian refineries, a sense of caution is once again creeping into the market sentiment."