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Oil Shock Pushes Treasury Yields Higher As Markets Brace For Inflation

Photo by Jorge Salvador / Unsplash

The U.S. Treasury yields rose Monday as investors reacted to soaring oil prices and growing concerns about inflation tied to the escalating conflict involving Iran, according to CNBC.

The benchmark 10-year Treasury yield climbed to about 4.17 percent, while the 30-year bond rose to roughly 4.78 percent. The two-year Treasury yield also moved higher to about 3.60 percent as markets adjusted to rising economic uncertainty.

Energy prices surged after disruptions across the Middle East pushed oil above $100 per barrel. West Texas Intermediate crude later traded near $101, while global benchmark Brent crude hovered around $103.

The price spike followed production cuts by several regional oil producers and the effective closure of the Strait of Hormuz, a key route for global energy shipments.

Investors are also watching upcoming economic data, including U.S. inflation figures and job market reports later this week. Federal Reserve officials are currently in a blackout period ahead of their next interest rate decision.

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