Traders work on the floor of the New York Stock Exchange (NYSE) on February 24, 2026 in New York City, USA.
Gina Moon | Reuters
US Treasury yields rose on Monday as investors failed to use the US bond market as a safe haven despite the US and Israel launching attacks on Iran over the weekend.
Rising oil prices have heightened concerns about inflation, leading to a rise in yields.
The benchmark 10-year Treasury yield rose more than 6 basis points to 4.025%. The 30-year U.S. Treasury bond also increased by more than 4 basis points, yielding 4.681%. The two-year Treasury yield rose more than 7 basis points to 3.451%.
One basis point equals 0.01%, and the yield is inversely proportional to the price.
Last weekend’s attack on Iran by the United States and Israel killed Iran’s supreme leader Ayatollah Khamenei. Meanwhile, more than 200 people have died in the country, according to state media.
Iran has launched retaliatory attacks against US military bases in the Middle East region. Three U.S. military personnel were killed and five others were seriously injured in the operation.
President Donald Trump told CNBC’s Joe Kernen that American military operations in Iran are “ahead of schedule,” and separately warned that the conflict could last up to four weeks and that more American casualties are expected.
Geopolitical disputes typically cause U.S. bond prices to rise and yields to fall, but concerns about the impact of higher oil prices on inflation and the potential for a protracted conflict with the U.S. going largely alone appear to have outweighed the safe-haven bid.
WTI crude oil prices recently rose about 6% to over $71 per barrel. Other safe-haven assets such as gold rose.
On the economic data front, investors are awaiting several important releases on Friday, including the February jobs report, January retail sales and February unemployment rate. Ahead of these, investors will focus on Monday’s ISM manufacturing report and Wednesday’s ADP jobs report.
