U.S. Federal Reserve Chairman Kevin Warsh speaks during his first press conference since taking over as head of the central bank June 17, 2026 in Washington, DC.
Chen Mengtong | Chinese Press Service | Getty Images
U.S. Treasury yields climbed on Monday, pushing the 2-year yield to its highest level since early last year, as investors eagerly awaited key inflation data due to be released on Thursday and assessed the latest developments in war negotiations between the United States and Iran.
THE 2-year Treasury bill the yield, which closely tracks the Federal Reserve’s short-term interest rate policy, was more than 4 basis points higher at 4.226%. It reached its highest level since February 21, 2025, with the yield reaching 4.275%.
The yield on the US Treasury at 10 years rating – the key benchmark used to evaluate mortgages, auto loans and credit card debt – rose more than 5 basis points to 4.509%. The most dated 30-year Treasury bond the yield rose more than 4 basis points to 4.949%.
One basis point is 0.01%, and yields and prices move in opposite directions.
The decline in bond prices came after the United States and Iran agreed on a road map aimed at reaching a deal within 60 days that would end the war. But President Trump also threatened further military action against Iran, which said it had closed the Strait of Hormuz again.
Crude prices have fluctuatedwith Brent trading down more than 3% – giving up an earlier gain – to trade around $77 per barrel. WTI futures fell more than 2% to $74 a barrel.
A key test for the fixed-income market will come later this week, when May figures from the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, are released on Thursday. Excluding food and energy price volatility, the core PCE is should increase starting in April, according to economists surveyed by FactSet.
Last week’s Fed meeting, which turned out to be more hawkish than many market watchers expected, saw expectations for interest rate hikes brought forward, perhaps as early as September.
Last Wednesday, Kevin Warsh’s first meeting as Federal Reserve chairman ended with a more hawkish bias toward interest rates from the 12 voting members of the Federal Open Market Committee, and a nod to possible rate hikes. At the meeting, the committee deleted key parts of a significantly shorter policy statement that previously indicated a bias toward future rate cuts.
Last week, the Fed kept the benchmark federal funds rate unchanged between 3.5% and 3.75%.
