0934 GMT - U.S. Treasury yields rise as military hostilities in the Middle East escalate further, while the dollar is relatively stable amid demand for safe-haven assets. The Middle East conflict has lifted oil prices and could push Treasury yields higher as they reinforce market expectations of a rate hike by the Federal Reserve, Hola Prime's Somesh Kapuria says in a note. "Elevated energy costs could reinforce the expectations that the Federal Reserve could raise interest rates," he says. Despite weaker-than-expected inflation figures published last week, the Fed is still expected to increase rates before year-end, he says. The 10-year U.S. Treasury yield rises 1.7 basis points to 4.556%, according to Tradeweb. The DXY dollar trades steady at 100.785. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 20, 2026 05:34 ET (09:34 GMT)
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