On Monday, Treasury yields remained stable amid rising tensions between the U.S. and Iran, following a weekend of retaliatory strikes that jeopardized a ceasefire agreement. The yield on the 10-year U.S. Treasury note held steady at 4.473%, while the 2-year note yield increased slightly to 4.223%. The 30-year Treasury bond yield remained unchanged at 5.071%.
The conflict escalated after Iran attacked a commercial shipping vessel, prompting U.S. military responses, including strikes on Iranian military bases across several Gulf states. This exchange raises concerns about the future of the interim peace agreement aimed at reopening the strategically important Strait of Hormuz.
In the oil market, Brent crude prices rose by 2.8% to $78.11 per barrel, and West Texas Intermediate futures increased by over 2.5% to $73.25. Investors are now looking ahead to a busy economic calendar, with core inflation data set to be released on Tuesday and consumer sentiment data expected on Friday.
Alex Guiliano, chief investment officer at Resonate Wealth Partners, noted that the upcoming reports will be crucial in determining whether consumer spending remains robust or if geopolitical tensions and high interest rates have begun to affect consumer behavior