The US 10-year yield topped 4.75% on Monday for the first time since January 2025 as rising oil prices bolstered expectations that the Federal Reserve will hike interest rates. The selloff extended to other tenors, with five-year yields also hitting their highest level since early last year.

Key oil benchmarks rose more than 3%, reaching session highs during US morning hours after President Donald Trump threatened Iran with additional attacks.

Analysts noted that the combination of geopolitical tensions and energy price volatility is likely to keep upward pressure on bond yields in the near term.

Market participants are closely watching upcoming Federal Reserve meetings for signals on monetary policy direction.