The U.S. 10-year Treasury yield reached 4.764%, its highest level since January 2025, as higher oil prices reinforced expectations that the Federal Reserve may need to raise interest rates to contain inflation. Yields on other maturities also climbed, with the five-year Treasury yield reaching its highest level since early last year. The move extended a selloff in U.S. government bonds that has intensified in recent days, while investors assessed growing concerns about government debt and the scale of rate increases needed to curb price pressures. U.S. President Trump also said in a Fox News interview that the United States would respond with further strikes to an Iranian attack on U.S. forces. Last Friday, Federal Reserve Chairman Wosh indicated at the Federal Reserve’s Jackson Hole meeting that the likelihood of rate hikes had increased, prompting a sharp rise in short-term Treasury yields.