Soaring oil prices have once again stoked inflation concerns, with the 10-year U.S. Treasury yield rising to 4.57%
Trump stated at the NATO summit in Turkey that the ceasefire between the United States and Iran has ended. Driven by the surge in oil prices, U.S. Treasury yields rose across the board on Wednesday. The 10-year U.S. Treasury bond is the core pricing benchmark for mortgage, car loan, and credit card interest rates. The latest yield rose 6 basis points to 4.589%. Short-end and long-term U.S. bond yields rose simultaneously: the 2-year U.S. bond yield, which anchors the Fed's short-term interest rate policy, rose more than 5 basis points to 4.218%; the 30-year U.S. bond yield, which is significantly affected by geopolitical conflicts, rose more than 4 basis points to 5.084%. List of real-time yields on U.S. Treasury bonds by maturity Trump's speech directly pushed up international oil prices, and the market was worried about the resurgence of inflation, which in turn put upward pressure on U.S. bond yields. The United States launched an attack on Iran on Tuesday. Trump made harsh words during a follow-up press conference on Wednesday and met with Ukrainian President Volodymyr Zelensky, threatening to strike Iran again. "I will give them a little warning, and tonight we will hit Iran hard," he said. Brent crude futures, the international pricing benchmark, rose 7.4% to $79.68 a barrel; U.S. West Texas Intermediate (WTI) crude oil futures rose 7.2% to $75.48 a barrel. On the one hand, traders are assessing the impact of Trump's remarks on long-term financing costs. On the other hand, traders are waiting for the Federal Reserve to release the minutes of the June Federal Open Market Committee (FOMC) meeting on Wednesday night to unearth clues about monetary policy under the leadership of new Federal Reserve Chairman Kevin Warsh.