U.S. 10-Year Treasury Yields Surge 4.70bp to 4.704% on July 23 Amid Oil Price Rally

According to Yonhapinfomax, on July 23 (U.S. Eastern Time), U.S. 10-year Treasury yields rose 4.70 basis points to 4.704%, while 2-year yields climbed 5.60 basis points to 4.358%. The 30-year yield increased 3.40 basis points to 5.180%. Geopolitical tensions in the Middle East, including threats to shipping lanes in the Red Sea's Bab al-Mandeb Strait, drove crude oil prices sharply higher. WTI crude futures for September delivery surged 5.80% to $91.84 per barrel, while Brent crude jumped 7.15% to $100.80 per barrel—the first time Brent has breached $100 since late May.

Inflation concerns from rising energy prices fueled expectations for additional Federal Reserve rate hikes. CME FedWatch data shows the probability of a 50 basis point rate increase by year-end rose to 38.5%, up from prior expectations. Meanwhile, initial jobless claims fell to 187,000 for the week ending July 18, the lowest level since September 1969, further supporting the case for tighter monetary policy.