Treasury Yields Hit Two-Month High as Oil Sparks Inflation Risk

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Or sign-in if you have an account.optebnbs6a00lvxijni84d1t_media_dl_1.png Bloomberg(Bloomberg) — The US Treasury market fell, pushing 10- and 30-year yields to the highest levels in about two months, as a surge in crude oil prices stoked concern that inflationary pressures will prompt the Federal Reserve to raise interest rates.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountYields on Tuesday were higher by two to four points across maturities, with the 10-year yield rising to touch its highest since late May at 4.64%. As the US and Iran exchanged strikes for a 10th consecutive day, the dollar advanced against most major currencies.“Today’s move is largely just a function of the continued rise in energy prices,” said Izaac Brook, a rates strategist at RBC Capital Markets. “The rates move has been exacerbated by the break back above highly-watched technical levels” — of 4.20% in two-year yields and 4.60% in the 10-year’s — “and typical summer trading conditions.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againA selloff in the bond market has wiped out the rally that followed the softer-than-expected inflation report released earlier this month. Brent crude, the global benchmark, rose to $91 a barrel as mediators work toward reviving a truce between the US and Iran.Interest-rate futures showed traders see about a 20% chance that the Fed will raise interest-rate at the policy meeting next week. Fed Chairman Kevin Warsh has repeatedly emphasized that inflation remains a concern for the central bank, a point that’s been echoed by other officials in recent weeks. Policymakers are now in their customary quiet period ahead of the July meeting.Adding to the case for higher yields, economic data pointed to continued resilience. The Philadelphia Fed’s services-sector survey showed activity expanded for the first time since October 2024.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.