FX.co ★ Treasury Yields Rise for 2nd Session

The yield on the US 10-year Treasury note rose to 4.58% on Wednesday, its highest level since late May, after an 8-basis-point increase in the previous session. The move came as escalating tensions in the Middle East pushed oil prices sharply higher, stoking concerns that renewed inflationary pressures could prompt further monetary tightening. Crude prices have jumped nearly 10% over the past two sessions, after President Trump stated that "as far as I'm concerned, the ceasefire is over." The US also launched new strikes on Iran and revoked a waiver that had allowed Tehran to sell crude on global markets. This latest escalation followed a series of attacks on vessels transiting the Strait of Hormuz, intensifying fears of disruptions to global oil supplies. At the same time, traders raised their expectations for additional Federal Reserve rate hikes, with the implied probability of a September increase climbing to about 70%, up from 58% the day before.