US Treasury Yields Rise to 2026 Highs With Oil Sparking Fed Bets

US Treasury yields rose to their highest levels of the year as the threat of escalation in the Iran war sent oil prices higher and boosted bets that the Federal Reserve could raise interest rates as soon as next week. The yield on two-year notes, which are particularly sensitive to expectations for Fed policy, climbed on Thursday by about 6 basis points to around 4.36%, reaching the highest since early 2025. Charles Tan, CIO at American Century Investments, discusses fixed income crosscurrents and the Fed.