Treasury yields climb as Brent tops $100 and revives Fed rate-hike concerns
Brent's move above $100 amid renewed Middle East conflict is reviving inflation fears and pushing global rates higher. US 2-year yields hit a post-2025 high while swaps price a higher probability of a near-term Fed hike, tightening financial conditions. Upcoming US 10-year supply and key labor data add near-term duration risk, while Germany's high-yield auction underscores broader sovereign repricing.
Affected assets
NCCO1OILBRENT2USD/USDT+0.47%
AI Insight · NCCO1OILBRENT2USD/USDTAI Insight
▼ Bearish
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Brent crude climbed above $100 a barrel for the first time since July as conflict flared again in the Middle East, stoking inflation concerns. The US two-year Treasury yield rose to 4.42%, the highest since January 2025, while the 10-year yield hovered near 4.81%, close to a three-year peak. Swaps imply a roughly 62% chance the Federal Reserve raises rates by a quarter-point next week.