On Monday, the yield on the 10-year U.S. Treasury note rose nearly 2 basis points to 4.56%, while the 2-year note yield increased by 1 basis point to 4.185%. The 30-year Treasury bond yield also saw a slight uptick, reaching 5.08%.
These movements come amid escalating military actions by the U.S. against Iranian targets, which have included strikes aimed at diminishing Iran's capabilities to threaten maritime security in the Strait of Hormuz. The situation has led to retaliatory actions from Iran, affecting regional stability and raising concerns among investors.
Last week, Treasury yields had eased as economic data suggested resilience against inflation, but the renewed tensions have shifted market sentiment. Investors are now closely watching upcoming economic indicators, including the S&P Global Flash U.S. PMI report, which will provide further insights into the health of the manufacturing and services sectors