economy
Treasury yields move higher as Middle East peace talks falter
Treasury yields rose Monday as traders reacted to the latest developments in the Middle East conflict.
TL;DR
- U.S. Treasury yields rose at the start of the week due to geopolitical developments in the Iran conflict.
- The 10-year Treasury note yield increased to 4.41%, the 2-year yield to 3.951%, and the 30-year bond yield to 4.98%.
- Peace talks regarding the Iran conflict appeared to be stalling, with President Trump calling Iran's counterproposal 'totally unacceptable'.
- Oil prices edged higher, with West Texas Intermediate futures settling up 2.78% at $98.07 per barrel.
- The upcoming April consumer price index report is expected to show inflation rising year-over-year to 3.7% and core inflation to 2.7%.
- Inflation is rising above the Federal Reserve's target of 2%.
- The April jobs report showed nonfarm payrolls rose by 115,000, exceeding forecasts but lower than March's figures, with unemployment holding steady at 4.3%.
- Federal Reserve Bank of Chicago President Austan Goolsbee noted the job market is stable but not strong, with a low hiring rate.