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U.S. Treasury yields increased on Tuesday, as renewed tensions in the Middle East drove global government borrowing costs higher.
The 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — rose more than 2 basis points to 4.7840%.
The longer-dated 30-year Treasury note yield, which tends to track geopolitical events, was also up more than 2 basis points at 5.2740%.
The yield on the 2-year Treasury note, which typically moves in line with short-term Federal Reserve interest rate decisions, was up more than 1 basis point at 4.3604%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
Borrowing costs rose as traders continue to weigh developments in the Middle East, after U.S. forces earlier launched fresh strikes against Iran, and a tanker was struck by unknown projectiles off the coast of Oman in the Strait of Hormuz.
The escalation pushed oil prices higher. West Texas Intermediate futures were last seen 1.49% higher at $87.04 per barrel, while Brent crude — the international oil price benchmark — advanced 1.34% to $91.71.
Investors are also monitoring the G20 finance ministers’ meeting in Asheville, North Carolina, which is set to conclude later Tuesday, as well as a raft of domestic economic data, including the ISM Manufacturing PMI print and the JOLTS job openings data, with non-farm payrolls figures expected Friday.
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