Treasury yields rise as global bond pressures and oil spikes weigh on markets

U.S. Treasury yields increased on Monday as selling pressure in global government debt markets resumed, driven by climbing oil prices and persistent inflation concerns. The 10-year Treasury note yield, a critical benchmark for consumer loans including mortgages and credit cards, rose more than 3 basis points to 5.219%. The longer-duration 30-year bond yield, which is particularly sensitive to geopolitical tensions, gained 2 basis points to 5.529%, while the 2-year note yield, closely tracking expectations for Federal Reserve policy, jumped more than 5 basis points to 4.916%.

The upward movement in yields follows a turbulent week for U.S. debt, during which the 10-year yield briefly touched its highest level since June 2007 before pulling back, and the 30-year yield reached levels not seen since 2004. Market anxiety is further fueled by a 4% surge in West Texas Intermediate crude futures to $96.13 per barrel, following reports that President Trump rejected an Iranian proposal to reopen the Strait of Hormuz.

Global bond markets mirrored the trend in the United States. Yields on 10-year U.K. Gilts rose 4 basis points to 5.408%, while German 10-year Bund yields held relatively flat at 3.6277%. Both French 10-year government debt and Japanese 10-year bond yields increased by more than 1 basis point.

Investors are now shifting focus to a dense schedule of domestic economic releases later in the week. Data on August’s job openings from the JOLTS report is due Tuesday and is projected to show a slight decline to 7.24 million from 7.27 million in July. Later in the week, the market will review the latest nonfarm payrolls and unemployment figures, following recent releases of the core PCE index and quarterly GDP growth data.