Why did the 10-year U.S. Treasury yield rise to 5 percent on Monday?

The yield rose as oil prices advanced on concerns tied to a Middle East war and the resulting inflation outlook. The market also expected the Federal Reserve to lift interest rates on Wednesday to counter inflation.

What happened to oil prices after Saudi Arabia shut its East-West pipeline?

Oil prices rose about four percent after the shutdown, which followed drone attacks by Yemen’s Houthis. The move added to fears because the closure of the Strait of Hormuz was also described as effective.

What other factors were pushing U.S. bond yields higher besides oil prices?

Analysts said the U.S. budget deficit and the artificial intelligence boom were also flooding the bond market and helping push rates higher. The article also noted that the 30-year U.S. Treasury bond yield was at its highest level in nearly 20 years.

Yield on 10-year US Treasury note at 5% for 1st time since 2023

Listen

Summary

The yield on the 10-year U.S. Treasury note hit 5 percent in New York on Monday as oil prices climbed on Middle East war fears and inflation worries. Near 1430 GMT, the yield stood at 5.01 percent, its highest level since October 2023. Higher oil prices also pushed both major crude contracts above 100 dollars a barrel, reinforcing expectations of a Federal Reserve rate hike on Wednesday. Analysts also cited the U.S. budget deficit and the artificial intelligence boom as factors putting upward pressure on bond yields.

Key Facts

The 10-year U.S. Treasury yield stood at 5.01 percent near 1430 GMT, its highest level since October 2023.
Oil prices rose about four percent after Saudi Arabia shut its East-West pipeline following drone attacks by Yemen’s Houthis.
Both major crude contracts were above 100 dollars a barrel.
The yield on the 30-year U.S. Treasury bond was at its highest level in nearly 20 years.
Analysts also pointed to the U.S. budget deficit and the artificial intelligence boom as factors flooding the bond market and pushing rates higher.

By AFP

Published Sep 15, 2026 12:30 am KST

The Treasury Building is viewed in Washington, May 4, 2021. AP-Yonhap

NEW YORK — The yield on the 10-year U.S. Treasury note hit five percent Monday as oil prices rose further amid a Middle East war that has exacerbated the inflation outlook.

Near 1430 GMT, the yield stood at 5.01 percent, its highest level since October 2023.

The move in the bond market came as oil prices advanced about four percent after Saudi Arabia shut its East-West pipeline — a key export route with Iran's effective closure of the Strait of Hormuz — following drone attacks by Yemen's Houthis.

The rise in oil prices, which means both major crude contracts now stand above $100 a barrel, has contributed to expectations that the Federal Reserve will lift interest rates on Wednesday to counter inflation.

The yield on the 30-year U.S. Treasury bond is currently at its highest level in nearly 20 years.

Besides higher oil prices, analysts have pointed to the U.S. budget deficit and the artificial intelligence boom as factors that have flooded the bond market, pushing rates higher.

Explore More