US Treasury yields rose on Monday as traders awaited more data on US factory activity and events in the Middle East continued to weigh on borrowing costs.
10 year treasure The yield – the benchmark for U.S. government borrowing – was up 1 basis point in early trading, at 4.3979% as of 5:10 a.m. ET.
Meanwhile, yields on 2 year treasury The notes, which are typically more sensitive to short-term Federal Reserve rate decisions, rose more than 2 basis points to 3.9107%. yields on 30 year note Rising by more than 1 basis point to 4.9792%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yields and prices move opposite to each other.
The rise in borrowing costs came as events in the Middle East came back into the spotlight on Monday.
President Donald Trump announced plans to “guide” commercial ships not involved in the conflict through the Strait of Hormuz shipping channel, vital to US forces. This could potentially include a mix of land- and sea-based aircraft, missile destroyers and 15,000 troops in an initiative called “Project Freedom.”
Oil prices increased West Texas Intermediate It rose 0.9% to $102.83 a barrel in early trading.
Following the announcement, Iran’s Foreign Ministry said in a statement that it was prepared to “respond to US threats” in the waterway.
US factory orders data is expected to show a surge in demand for manufactured goods in March. Trading Economics’ consensus estimate shows a 0.5% increase for the month from February’s total of $619.6 billion.
Factory activity, as measured by the Institute for Supply Management’s April manufacturing index, came in at 52.7 on Friday, unchanged from March and slightly below economists’ estimate of 53.0. ISM data also showed that prices paid by manufacturers reached their highest level since April 2022.
Later on Monday, Federal Reserve Bank of New York President and CEO John C. Williams will also deliver a speech on monetary policy.
