10-year yield hits highest since January 2025

Key Points:

• U.S. Treasury yields remained mostly steady on Tuesday amid renewed Middle East tensions, with the 10-year yield rising slightly to 4.766%, near its highest level since January 2025.
• The 30-year Treasury yield edged down marginally to 5.241%, while the 2-year yield increased over 1 basis point to 4.369%, reflecting short-term Federal Reserve rate expectations.
• Geopolitical concerns, including U.S. strikes on Iran and an attack on a tanker near the Strait of Hormuz, pushed oil prices higher, with West Texas Intermediate crude rising above $88 per barrel.
• Market uncertainty persists due to inflation worries, unclear Federal Reserve policy, fiscal issues, and increased debt issuance related to AI, contributing to ongoing bond yield volatility.
• Investors are also focused on the G20 finance ministers' meeting and upcoming U.S. economic data, including Friday's nonfarm payrolls report; August ISM Manufacturing Index slightly missed expectations at 54.6.