U.S. Treasury yields surge across the board, Feds first rate cut expectation delayed to September.

The selloff of US Treasury bonds has caused yields to rise, as the US and Israel continue to escalate their conflict with Iran, disrupting the energy market and triggering a flight of safe-haven funds. Despite the strengthening of the US dollar, concerns about inflation driven by energy and the high costs of long-term conflict have dampened demand for US government bonds. Marc Chandler of Bannockburn states, "This is the result of a combination of position adjustments and the inflation impact of rising oil prices." He points out that investors are shifting their bets on a Fed rate cut from July to September. The yield on the 10-year US Treasury bond rose by 0.090 percentage points to 4.051%, while the yield on the 2-year US Treasury bond rose by 0.108 percentage points to 3.485%.