Treasury yields rise as oil gains and U.S.-Iran tensions fuel inflation fears

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Aug. 5, 2026. Jeenah Moon | ReutersTreasury yields rose on Tuesday, with long-dated yields surging to their highest level in over two decades, as tensions between the U.S. and Iran persisted. The early hours of Tuesday morning saw yields on U.S. 30-year Treasury yields add over 1 basis point to trade at around 5.322%, hovering just below the highest level since 2002. The 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was more than 1 basis point higher at 4.736%.The yield on the 2-year Treasury note, which typically reacts in line with short-term Federal Reserve interest rate decisions, was flat at 4.186%.Stock Chart IconStock chart iconLong-term Treasury yields are trading at multi-decade highs. One basis point equals 0.01%, and yields and prices move inversely to one another.Oil prices rose as the 60-day deadline for the U.S. and Iran to secure a peace deal expired Monday, with Iran ruling out the possibility of an extension, according to state media. A senior Iranian official also told Reuters that Tehran would take an offensive stance if dipl...