Yields on U.S. Treasury bonds rose amid reports of a blockade of Iranian ports
Yields on U.S. Treasury bonds rose on Friday, August 14, following statements by U.S. officials regarding the possibility of an indefinite extension of the naval blockade of Iranian ports, according to CNBC.
The yield on 10-year U.S. Treasury bonds, a key benchmark for government borrowing costs, rose by 2 basis points to 4.661%. The yield on 2-year Treasuries, which is more closely tied to the Federal Reserve’s short-term policy, rose by more than 1 basis point to 4.152%.
The yield on 30-year U.S. Treasury bonds rose by more than 2 basis points to 5.237%. One basis point equals 0.01 percentage point. Bond prices and yields move in opposite directions.
For more breaking news, follow the UA.News Telegram channel.
U.S. Treasury Secretary Scott Bessent warned in an interview with Newsmax of possible new measures aimed at the “economic isolation” of Iran. Earlier, U.S. Defense Secretary Pete Hagset told reporters that U.S. forces could maintain the blockade of Iranian ports indefinitely.
Markets also assessed the latest U.S. inflation data. The Producer Price Index remained unchanged in July compared to the previous month, while economists surveyed by Dow Jones had expected a 0.2% increase. The day before, the Consumer Price Index came in line with economists’ forecasts.
ING strategists noted that this week’s U.S. inflation data was favorable for the government bond market. At the same time, in their view, pressure for higher rates has not completely disappeared, and real yields are higher and are likely to remain so.
