U.S. Treasury yields extended their recent rise on August 31, as the 10-year yield touched 4.764%, its highest level since January 2025. Higher oil prices strengthened expectations for further Federal Reserve rate hikes, while wider selling in Treasuries reflected concerns about government debt and inflation. The 5-year yield also reached its highest level since early last year, and the 30-year yield rose 5 basis points to nearly 5.26%, although it remained below the multi-year high recorded in mid-August. Pressure on bonds intensified after Fed Chair Warsh said at Jackson Hole on Friday that the likelihood of rate hikes had increased to contain price pressures. On the same day, Trump told Fox News that the United States would respond with further strikes to Iran's attack on US troops.