U.S. Treasury yields rose slightly on Monday as Wall Street monitors the latest developments amid escalating tensions in the Middle East.
The yield on the US Treasury at 10 years rating — the key benchmark for U.S. government borrowing — rose nearly 2 basis points to 4.56%.
THE 2-year Treasury bill the yield, which more closely tracks the Federal Reserve’s short-term interest rate policy, gained 1 basis point to 4.185%. The most dated 30-year Treasury bond the yield also increased by 1 basis point to 5.08%.
One basis point is 0.01%, and yields and prices move in opposite directions.
U.S. Central Command completed the ninth consecutive evening of strikes against Iran at 10 p.m. ET on Sunday, Centcom said. in an article on.
The three-hour exercise targeted Iran’s military command centers, air defense and coastal surveillance sites, maritime capabilities, and missile and drone launch sites. Centcom said the operation aimed to further diminish Tehran’s ability to attack commercial ships and civilian sailors transiting the Strait of Hormuz.
US strikes have intensified in recent days, with Tehran reporting strikes against civilian infrastructure, including the Bonji desalination plant which cut off water supplies to around 10,000 people.
Tehran retaliated in the Gulf by launching new attacks on targets in neighboring countries, including Bahrain, Saudi Arabia and Jordan. The Kuwaiti military said on Monday that its air defense systems were intercept “hostile” drone attacks from Iran.
Treasury yields fell last week as investors digested a raft of data indicating the U.S. economy continues to resist inflationary pressures caused by the war in Iran.
Last week’s decline in borrowing costs was colder than expected producer And consumer price data, while U.S. jobless claims for the week ending July 11 were lower than forecast, at 208,000 after seasonal adjustment.
On Friday, investors will be watching the latest S&P Global Flash US PMI report, which measures the economic health of the US manufacturing and services sectors.
— CNBC’s Anniek Bao and Sean Conlon also contributed to this report.
