Traders work on the floor of the New York Stock Exchange (NYSE) on Monday, February 2, 2026 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
U.S. Treasury yields rose on Tuesday after renewed tensions in the Middle East pushed global government borrowing costs to their highest since early last year.
of 10 year treasury Banknote yields, a key measure of mortgage, auto loan and credit card debt, rose 3 basis points to 4.788%, the highest level since January 14, 2025.
longer date 30 year treasury Bond yields, which tend to track geopolitical events, rose more than 2 basis points to 5.272%.
yield of 2 years treasury The bond, which typically moves with the Federal Reserve’s short-term interest rate decisions, rose more than 1 basis point to 4.362%.
One basis point is equal to 0.01%, or one-hundredth of 1%, and yield and price are inversely proportional to each other.
Borrowing costs rose as traders continued to weigh developments in the Middle East after the U.S. military earlier launched a new attack on Iran and a tanker was hit by an unknown projectile in the Strait of Hormuz off the coast of Oman.
This escalation caused oil prices to rise. West Texas Intermediate Futures The last time it rose more than 1% was more than $87 per barrel. brent crude oil Crude oil, a benchmark for international oil prices, rose more than 1% to over $92.
“After six months of war, with no clear path to reopening the Strait, inflation concerns remain elevated. Bonds remain under pressure due to uncertainty surrounding the Federal Reserve’s policy outlook, fiscal concerns, and increased AI-related bond issuance,” Ulrike Hoffman Burchardi, chief investment officer for the Americas and head of global equities at UBS, said in a note on Tuesday. “Yield fluctuations are likely to continue in the short term.”
Investors will also be keeping an eye on the G20 finance ministers’ meeting, which is scheduled to conclude late Tuesday in Asheville, North Carolina, and a host of domestic economic data, including the ISM manufacturing PMI statistics, including non-farm payrolls expected on Friday, and the job openings and turnover survey.
