US Treasury bond yields have increased due to escalating tensions in the Middle East.

As the weekend peace talks between the United States and Iran collapsed, sparking concerns about inflation, demand for US treasuries weakened and yields rose. With the US preparing to block the Strait of Hormuz, oil prices surged above $100 per barrel. Concerns about inflation boosted bets that the Federal Reserve will stand pat this year. The Wall Street Journal Dollar Index fell 0.8%. The yield on the 10-year US Treasury note was reported at 4.331%, up from 4.316% on Friday, but off overnight highs. The yield on the 2-year US Treasury note rose from 3.799% to 3.812%.