The yield on the US 10-year Treasury note climbed nearly 6 basis points to 4.1% on Tuesday, its highest level since mid-February, after an almost 9-basis-point rise in the previous session. The move reflects ongoing tensions with Iran and a continued surge in energy prices, which are stoking worries about a resurgence of inflation and the prospect of further delays to Federal Reserve rate cuts.
Markets have pushed back expectations for the Fed’s next rate reduction to September, from earlier projections of July, though pricing still implies two 25-basis-point cuts in 2026. Notably, the usual safe-haven demand for Treasuries has not emerged, as inflation fears appear to be overshadowing the appeal of defensive assets.
