FX.co ★ US 10Y Yield Rises Amid Mideast Tensions

The yield on the US 10-year Treasury note climbed to around 4.35% on Monday as investors reacted to the latest escalation in the Iran conflict. President Donald Trump set a new deadline for Tehran and intensified threats against Iran’s power plants and other civilian infrastructure should the Strait of Hormuz remain closed. Iran rejected the demands, continued strikes on energy assets across the Middle East, and kept the key shipping lane effectively shut.

The protracted conflict has driven energy prices higher, heightening inflation concerns and reinforcing expectations that the Federal Reserve may halt its rate-cutting cycle or even raise interest rates later this year. Data released during Friday’s holiday showed the US economy added 178K jobs in March, nearly three times the 60K forecast, while the unemployment rate ticked down to 4.3% from 4.4%. Investors are now looking to the latest FOMC minutes for clearer guidance on the central bank’s policy outlook.