Yields on U.S. Treasury securities eased on Wednesday following a notable selloff in the prior trading session, as lingering uncertainty around the conflict with Iran and sustained pressure in energy markets continued to influence fixed-income demand.
The yield on the benchmark 10-year Treasury note was last reported down two basis points at 4.647%. That follows a rise on Tuesday that carried the 10-year to 4.687%, its highest reading since January 2025.
The 30-year Treasury bond, often watched by investors as a gauge of longer-term geopolitical and fiscal risk, was down roughly 1 basis point at 5.173% on Wednesday. On Tuesday it briefly climbed to 5.197%, marking its highest level since July 2007 before the Global Financial Crisis.
Market participants have pushed both U.S. and global bond yields higher over the past week. The pressure on sovereign debt has coincided with a stall in peace negotiations between the U.S. and Iran and with energy prices that have remained elevated since the conflict began in late February.
Brent crude, a key global oil benchmark, was trading just above $108 per barrel on Wednesday after touching $111 per barrel earlier in the week on Monday, reflecting the tightness in energy markets cited by traders.
Shorter-dated Treasury instruments also moved lower in yield. The 2-year Treasury note, whose price action typically aligns closely with market expectations for Federal Reserve policy, was last down 2.7 basis points at 4.095%.
Investors also watched the spread between the 2- and 10-year yields, a commonly referenced part of the U.S. Treasury yield curve used to gauge economic expectations. That gap was last recorded at 54.39 basis points.
Context and implications
The recent volatility in bond markets reflects a combination of geopolitical uncertainty and persistent energy cost pressures. These dynamics have contributed to a week-long move higher in global yields, punctuated by Tuesday's peak readings and a modest retracement on Wednesday.