- Treasuries resumed selling off Monday, with the rate-sensitive US two-year yield rising five basis points to 4.90% and the 10-year yield climbing four basis points to 5.20%.
- The move follows last week's surge in yields across tenors to multiyear highs, driven by hawkish comments from Federal Reserve officials.
- Oil rallied after Trump rejected Iran's proposal to reopen the Strait of Hormuz, adding a fresh inflation impulse on top of an already rising rate backdrop.
- Sovereign bonds also fell in Japan and Australia, extending the duration selloff beyond US markets.
Quotes
“A selloff in Treasuries resumed Monday as oil rallied after President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, intensifying inflation concerns.”
“Yields on rate-sensitive US two-year bonds rose five basis points to 4.90% while the 10-year yield climbed four basis points to 5.20%.”
“Monday's selloff in Treasuries comes after yields across tenors surged to multiyear highs last week amid hawkish comments from Federal Reserve officials.”