Seagulls settle on poles as boats navigate the sea on April 28, 2026 on Qeshm Island, Iran in the Strait of Hormuz. <\/p>\n
Asghar Besharati | Getty Images<\/p>\n
U.S. Treasury yields moved higher Monday as investors weighed the latest news coming out of the Middle East and awaited a fresh batch of economic news on the labor market later this week.<\/p>\n
The 2-year Treasury<\/a> yield moved up 3.7 basis points to 3.925% while the benchmark 10-year note<\/a> moved up 3.2 basis points to 4.41%.<\/p>\n A basis point equals 0.01 percentage point. Yields and prices move in opposite directions.<\/p>\n Fixed income yields rose following conflicting reports out of the vital Strait of Hormuz shipping channel.<\/p>\n Iranian state media reported that the country had hit a U.S. warship in the area, though U.S. Central Command later denied the report<\/a>. Stock market futures slipped off the report but were off their lows, while oil prices climbed but came off earlier highs.<\/p>\n As the latest events in the Middle East hit markets, traders also awaited a data later in this week that will provide more clues on the muddy U.S. jobs picture.<\/p>\n The Bureau of Labor Statistics is set on Friday to release the April nonfarm payrolls count. Economists surveyed by Dow Jones are expecting a gain of just 53,000 following the robust 178,000 in March. The unemployment rate is expected to hold steady at 4.3%.<\/p>\n Markets have been weighing how the Federal Reserve will react to an economic picture that includes inflation well above the central bank’s 2% target and mixed messages coming out of the labor market.<\/p>\n The rate-setting Federal Open Market Committee next meets June 16-17, and traders are pricing in only a slight chance of a rate cut then. While market pricing is pointing to few moves this year, last week’s FOMC meeting and subsequent statements from three officials indicate misgivings<\/a> about the direction of monetary policy.<\/p>\n Regional presidents Neel Kashkari of Minneapolis, Lorie Logan of Dallas and Beth Hammack of Cleveland all indicated that they objected to an apparent easing bias expressed in the committee’s post-meeting statement. Kashkari said Sunday in an appearance on CBS’s “Face the Nation” that he could see a rate increase in the worst-case scenario where inflation holds at elevated levels.<\/p>\n