US Yields Push Higher Amid Inflation Fears

2026-03-03 09:38 By Joana Taborda 1 min. read

The yield on the US 10-year Treasury note rose nearly 7 basis points to 4.1% on Tuesday, its highest level since mid-February, after climbing almost 9 basis points in the previous session.

The increase came as the conflict with Iran intensified and mixed signals from the Trump administration about the potential duration of the war added to uncertainty.

Meanwhile, energy prices continued to surge, heightening concerns over renewed inflationary pressures.

Notably, the typical safe-haven bid in bonds failed to materialize, as inflation worries appeared to outweigh demand for defensive assets.

Markets have pushed back expectations for the Federal Reserve’s next rate cut to September, from earlier forecasts of July, although two 25-basis-point reductions remain priced in for 2026.

Investors are also turning their attention to Friday’s jobs report, which will be closely watched for further insight into the trajectory of the labor market.



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