US Treasury yields jump sharply

US Treasury yields rose sharply as investors tried to assess the inflationary impact of soaring oil prices amid escalating conflict in the Middle East.

The 2-year Treasury bond note yield (the most sensitive to monetary policy changes) climbed 6.9 basis points (bps) to 3.625% at 6:44 AM Makkah time. Yields typically move inversely to prices.

The yield on the 10-year note rose 7.2 bps to 4.204%, while the yield on the 30-year note increased 5.9 bps to 4.815%.

The spread between the two-year and 10-year bonds reached approximately 58 bps, suggesting that markets anticipate higher inflation in the foreseeable future. This comes after oil prices surged by about 25% today.

On the other hand, yields on 10-year Japanese government bonds rose by 6 bps to 2.224%, while their British counterparts increased by 4.6 bps to 4.668%.