US 10-Year Treasury Note Reaches July-Highs

2026-05-13 12:55 By Joana Taborda 1 min. read

The yield on the US 10-Year Treasury note climbed to 4.48% on Wednesday, its highest level since July 2025, amid growing signs that the conflict involving Iran is adding to inflationary pressures.

Producer prices rose 1.4% month-on-month, marking the sharpest increase since 2022, largely driven by higher energy costs.

A day earlier, data showed that both headline and core consumer inflation accelerated more than expected, reinforcing concerns that price pressures are becoming more persistent.

Meanwhile, tensions between the US and Iran continue with little indication of a near-term resolution, raising expectations that elevated oil prices could persist.

As a result, investors increasingly expect the Federal Reserve to keep interest rates unchanged for the remainder of the year, with the odds for a 25bps rate hike in December standing above 30%.



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