Middle East conflict reignites, pushing up oil prices! As the prospect of interest rate hikes grows warmer, the 2-year US bond yield rises to its highest level in 16 months.

According to the Securities Times app, as tensions between the US and Iran escalate again, pushing up oil prices, the market increasingly speculates that the Federal Reserve will tighten monetary policy to curb inflation. The yield on US 2-year bonds has risen to its highest level in over 16 months. Data shows that the most interest rate-sensitive US 2-year bond yield rose by 3 basis points to 4.24%, reaching the highest level since February 2025; the benchmark 10-year US Treasury bond yield also rose by 2 basis points to 4.58%.