U.S. Treasury Yields Soar Past 4 Percent Amid Middle East Tensions

(MENAFN) U.S. Treasury yields climbed sharply on Monday, with the 2-year bond yield breaching the 4% threshold as escalating tensions across the Middle East rattled global debt markets and pushed investors toward risk-off positioning.

The 2-year yield — which opened the week at approximately 3.9% — surged to 4.007% by 1050 GMT, marking its highest reading since June 2, 2025. The move signals growing unease among bond traders as geopolitical instability continues to weigh on market sentiment.

Longer-dated Treasuries followed suit. The 5-year yield stood at 4.1%, while the benchmark 10-year note climbed to 4.43%, reflecting broad upward pressure across the yield curve.

Adding to the risk-averse tone, the U.S. Credit Default Swap — a key gauge of sovereign credit risk — rose 2.5% on Monday to reach 37.3, underscoring mounting investor concern over near-term economic and geopolitical uncertainty.

Analysts are closely watching whether the yield surge sustains momentum through the week, as any further deterioration in Middle East conditions could amplify safe-haven demand and accelerate the repricing of U.S. debt.

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