Rising Oil Prices Spark Inflation Concerns; US 10-Year Treasury Yield Hits Highest Since January Last Year

U.S. Treasury yields rose across the board as international oil prices surged amid recently heightened tensions in the Middle East.

According to foreign media outlets such as CNBC on the 1st (local time), the yield on the benchmark 10-year U.S. Treasury note rose 3 basis points (1 bp = 0.01 percentage points) from the previous session to 4.788% that morning.

This is the highest level since January 14, 2025.

The yield on the 30-year U.S. Treasury bond, which serves as a benchmark for U.S. mortgages and other loans, also increased by more than 2 basis points to 5.272%.

The yield on the 2-year Treasury note, which is sensitive to monetary policy, stood at 4.362%, up by more than 1 basis point.

Because bond yields and bond prices move inversely, a rise in Treasury yields means a fall in prices.

As oil prices rose due to renewed military engagement between the U.S. and Iran, fueling inflation concerns, experts interpret that a combination of uncertainties surrounding the Federal Reserve's monetary policy outlook, U.S. fiscal concerns, and an increase in artificial intelligence (AI)-related debt issuance has exerted upward pressure on U.S. Treasury yields.

International oil prices have been on an upward trend as concerns over crude supply disruptions grow, driven by recent U.S. military airstrikes targeting Iran, Iran's retaliatory attacks, and an oil tanker attack in the Strait of Hormuz.

As of 9:00 a.m. Eastern Time, Brent crude futures for November delivery, the international benchmark, were trading up 2.30% from the previous session at $92.57 on London's ICE Futures exchange.

At the same time, West Texas Intermediate (WTI) crude for October delivery on the New York Mercantile Exchange was trading up 2.88% from the previous session at $88.23, compounding inflation pressures.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.