Traders work on the floor of the New York Stock Exchange on July 8, 2025 in New York City.
Michael M. Santiago | Getty Images
Tensions between the United States and Iran rose on Monday, with U.S. Treasury yields rising, further clouding the outlook for a deal to end the conflict.
of 10 year treasury Yields, a key benchmark for mortgages, auto loans and credit card debt, rose more than 5 basis points to 4.504%.
yield of 2 years treasury The note, which often moves in response to short-term Federal Reserve interest rate decisions, rose more than 6 basis points to 4.076%.
of 30 year bond Meanwhile, the yield rose more than 2 basis points to 5.017%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yield and price are inversely proportional to each other.
Borrowing costs increased after Iran’s Tasnim news agency reported that Iranian negotiators had halted talks with the United States following Israel’s attack on Lebanon. The report also said that Iran would completely close the Strait of Hormuz.
The United States and Iran also exchanged airstrikes over the weekend. Overnight, the United States successfully intercepted two Iranian ballistic missiles aimed at U.S. forces based in Kuwait, according to U.S. Central Command.
Bond yields stabilized on Friday as traders ended the month focused on geopolitical developments amid signs that the United States and Iran are moving closer to extending their ceasefire.
However, new uncertainty over the outcome of the conflict caused oil prices to rise on June 1st. price of West Texas Intermediate Futures While it soared 7% to about $93 per barrel. brent crude oilCrude oil prices, a benchmark for international oil prices, rose 6% to about $96 per barrel.
Former Federal Reserve Chairman Jerome Powell also warned in a speech that the Trump administration’s move to push central banks toward lower interest rates risks undermining public confidence in the independence of central banks.
