US 10-Year Treasury Yield Holds at 16-Month Highs

2026-05-20 02:40 By Jam Kaimo Samonte 1 min. read

The yield on the US 10-year Treasury note held its recent advance to around 4.67% on Wednesday, hovering at 16-month highs as growing concerns over an energy-driven inflation shock fueled expectations that the Federal Reserve could raise interest rates.

President Donald Trump warned that the US may resume strikes on Iran within “two or three days” if Tehran failed to agree to Washington’s peace terms.

The prolonged conflict has effectively kept the strategic Strait of Hormuz closed to shipping traffic, pushing oil prices higher and intensifying inflationary pressures worldwide.

As a result, market expectations have shifted away from anticipated Federal Reserve rate cuts this year toward the possibility of another rate hike before year-end.

Meanwhile, Philadelphia Fed Bank President Anna Paulson said she supported keeping interest rates unchanged for now and stressed that any reduction in borrowing costs would depend on sustained progress in lowering inflation.



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