The yield on the US 10-year Treasury note rose to around 4.2% on Monday, reaching its highest level in nearly a month as oil topped $100 a barrel amid mounting concerns that a prolonged Middle East conflict could lead to longer-term disruption of global energy supplies. Investors have been revising inflation expectations since the outbreak of hostilities last week, reinforcing bets that the Federal Reserve may delay rate cuts. The Iran war entered its second week with no resolution in sight, with President Donald Trump demanding Tehran’s unconditional surrender. Iran also appointed Mojtab Khamenei to succeed his father as Supreme Leader, signaling that hardliners remain firmly in control. Meanwhile, surprisingly weak US jobs data on Friday had supported expectations for Fed easing, but those bets faded on Monday as surging oil prices stoked renewed inflation concerns.
