The U.S. 10-year Treasury yield stood around 4.96% on Monday, near its highest level since October 2023, as investors prepared for a Federal Reserve policy decision and assessed renewed oil-related inflation risks. Markets priced an 86% probability of a 25-basis-point rate increase on Wednesday and expected another increase later this year, following a 0.3% monthly rise in core CPI reported on Friday. Saudi Arabia's shutdown of the East-West pipeline, an alternative export route around the Strait of Hormuz, added to concerns about energy prices. The Treasury Department repurchased $5.2 billion of bonds in its latest buyback operation, below its $6 billion maximum and against about $10.5 billion in offers. Earlier in the selloff, the 10-year yield reached 4.943% on September 10, while the 30-year yield touched 5.37%, its highest level since 2001, and a $22 billion 30-year auction cleared at 5.308%. Fiscal borrowing, elevated mortgage rates and global monetary tightening have also remained central drivers of pressure on longer-dated government debt.