U.S. Treasury yields rose on Monday as traders awaited more data on U.S. factory activity and events in the Middle East continued to worry about borrowing costs.
of 10 year treasury The yield on U.S. government borrowing rose more than 1 basis point in early trading to 4.3979% by 5:10 a.m. ET.
on the other hand, 2 years treasury The note, which is typically more sensitive to short-term Federal Reserve interest rate decisions, rose more than 2 basis points to 3.9107%. yield 30 year bond It rose more than 1 basis point to 4.9792%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yield and price are inversely proportional to each other.
The rise in borrowing costs comes as events in the Middle East returned to the spotlight on Monday.
President Donald Trump announced plans for the U.S. military to “guide” commercial ships not involved in the conflict through the critical Strait of Hormuz. This could involve ground and naval aircraft, missile destroyers and 15,000 troops in an effort called “Project Freedom.”
Crude oil prices rose slightly, west texas intermediate In early trading, it rose 0.9% to $102.83 per barrel.
Following the announcement, Iran’s Foreign Ministry said in a statement that it was ready to “response to US threats” in the waterway.
US factory orders figures are expected to show a recovery in demand for manufactured goods during March. Trading Economics’ consensus forecast shows a 0.5% increase from February’s total of $619.6 billion.
Factory activity as measured by the Institute for Supply Management’s April Manufacturing Business Index stood at 52.7 on Friday, unchanged from March and slightly below economists’ expectations of 53.0. ISM data also showed that prices paid by manufacturers reached their highest level since April 2022.
Later Monday, John C. Williams, president and CEO of the New York Fed, is also scheduled to speak on monetary policy.
