FX.co ★ US Yields Push Higher Amid Inflation Fears

The yield on the US 10-year Treasury note climbed nearly 7 basis points to 4.1% on Tuesday, its highest level since mid-February, after an almost 9-basis-point jump in the previous session. The move came as the conflict with Iran escalated and mixed messages from the Trump administration about the potential length of the war added to market uncertainty. At the same time, energy prices continued to surge, intensifying concerns about a resurgence in inflationary pressures. Notably, the usual safe-haven demand for Treasuries failed to emerge, as inflation fears appeared to outweigh the appeal of defensive assets. Markets have now pushed back expectations for the Federal Reserve’s next rate cut to September, from earlier projections of July, although two 25-basis-point reductions are still priced in for 2026. Investors are also looking ahead to Friday’s jobs report, which will be closely monitored for further clues on the labor market’s trajectory.