The yield on the US 10-year Treasury note rose to around 4.59% on Monday, trading near a seven-week high. The move came as renewed missile exchanges between the United States and Iran boosted oil prices, strengthening expectations of further interest-rate increases to curb inflation. The US carried out its fourth strike in a week against Iran on Sunday, in response to an Iranian attack on a Cyprus-flagged container ship.
Investors are also looking ahead to key US inflation data due this week for additional guidance on the Federal Reserve’s policy path. Markets currently anticipate one more rate hike from the Fed before year-end. Minutes from the Fed’s June meeting, released last week, indicated that while a few policymakers saw a case for raising rates, they ultimately agreed to leave policy unchanged. Meanwhile, Fed Chair Kevin Warsh is set to make his first appearance before the US Congress on Tuesday and Wednesday.
