U.S. Treasury yields rose on Tuesday, with long-dated maturities surging to their highest levels in more than two decades, as persistent tensions between the U.S. and Iran kept oil prices elevated and revived fears of a fresh inflation shock.
The yield on the 30-year Treasury bond added over 1 basis point to trade around 5.322%, hovering just below its highest level since 2002. The 10-year note yield, the benchmark for mortgages, auto loans and credit card debt, rose more than 1 basis point to 4.736%, according to CNBC. The 2-year yield, which typically moves in line with expectations for Federal Reserve policy, was flat at 4.186%.
One basis point is equal to 0.01%, and yields move inversely to bond prices.
Geopolitical pressure builds
The move came as a 60-day deadline for the U.S. and Iran to reach a peace deal expired on Monday, with Iran ruling out an extension, according to state media. A senior Iranian official also told Reuters that Tehran would adopt an offensive stance if diplomacy with Washington failed.
Oil prices advanced on the news, adding to upward pressure on inflation expectations. Deutsche Bank’s Jim Rid noted in a Tuesday research note that markets had seen “growing weakness over the last 24 hours, with bonds and equities slipping thanks to negative geopolitical headlines from the Middle East.”
“There wasn’t a single catalyst for the declines, but with few signs of the US and Iran coming to any sort of a deal, that meant investors priced in a more extended closure of the Strait of Hormuz,” Rid wrote.
Global bond markets under pressure
The inflation jitters are pushing government borrowing costs higher around the world, with many long-dated yields sitting near multi-decade highs. Japan’s long-dated government bond yields hovered near levels hit in May, when they reached 40-year peaks. Germany’s 30-year bond yield was last seen at its highest since 2011, while Britain’s 30-year yield approached a multi-decade high. French 30-year government bond yields also ticked up to a post-2008 high.
On the economic data front, investors are awaiting July import and export price figures, along with housing starts and pending home sales data due Tuesday.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/18/treasury-yields-.html
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