Treasury Yields Forge Higher as Investors Bet on Rate Hikes -- WSJ

Dow Jones03-23 18:38

By Ed Ballard

U.S. Treasury yields continue to climb as the Middle East energy crisis shows no sign of abating, fueling expectations of higher inflation and interest-rate hikes by the Federal Reserve.

-- The yield on the 10-year Treasury note was recently up 0.03 percentage point at 4.42%, on course for its highest close since July. The two-year yield was up 0.1 percentage point at 4%. Bond yields move inversely with prices.

-- Investors now see a 57% chance of at least one U.S. rate hike this year, up from zero a week ago, according to CME Group's Fedwatch tool.

-- "Escalation makes the rate hikes investors are now expecting more likely, and we suspect there would be more pain to come for bonds if the war continued to drag on," Capital Economics writes.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

March 23, 2026 06:38 ET (10:38 GMT)

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