Traders work on the floor of the New York Stock Exchange (NYSE) on June 18, 2025 in New York City, USA.
Brendan McDiarmid | Reuters
U.S. Treasury yields were relatively flat on Monday as investors weighed the fallout from tensions in the Middle East and a reduced likelihood that the Federal Reserve would cut interest rates anytime soon.
The yield on the 10-year Treasury note, a key benchmark for mortgages, auto loans and credit card debt, was flat at 4.536%.
The yield on the two-year Treasury note, which is more sensitive to the Federal Reserve’s short-term interest rate decisions, fell more than 1 basis point to 4.149%.
The long-term 30-year Treasury yield, which typically responds to geopolitical risks, rose less than 1 basis point to 5.005%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
The move marks a continuation of the rise in bond yields seen on Friday following a better-than-expected May jobs report in which the unemployment rate was flat at 4.3% and nonfarm payrolls rose by 172,000.
This is a sign of resilience in the U.S. labor market, dampening traders’ expectations for interest rate cuts under new Federal Reserve Chairman Kevin Warsh as attention returns to inflation concerns.
President Donald Trump said Warsh should “do whatever he wants” to do with the trajectory of interest rates, but reiterated his desire to lower borrowing costs.
In an interview with NBC News’ “Meet the Press,” Trump said there was “no reason to raise rates” in response to what he called a “great report,” adding that raising rates would “kill success.”
Meanwhile, energy prices rose on Monday after Israel and Iran exchanged missile strikes for the first time since a cease-fire took effect in April. Prices subsequently fell after Iran’s Foreign Ministry told CNBC that military operations against Israel had ended.
brent crude oilCrude oil, the benchmark international oil price, rose 1% to about $94 a barrel. west texas intermediate Futures were last seen nearly 1% higher at around $91.
