Yields on the 10-year Treasury note — the main benchmark for mortgages, auto loans and credit card debt — were more than 2 basis points higher at 4.481%. The yield on the 2-year Treasury note, which typically reacts in line with short-term Federal Reserve interest rate decisions, rose 2.5 basis points to 4.076%.
The 30-year Treasury yield, which traditionally moves on geopolitical events, was up 2 basis points at 4.987%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
Investors continue to grapple with the increasingly uncertain direction of the Middle East peace negotiations after U.S. and Iranian forces once again exchanged missile fire overnight, further threatening the already fragile ceasefire.
Energy prices ticked higher in early trade, with U.S. West Texas Intermediate futures up 2.1% at $95.75 a barrel, while international price benchmark Brent crude rose 2.2% to $98.06.
On the domestic data front, traders are awaiting the Institute for Supply Management’s latest services PMI print for May. The ISM services index dipped from 54 in March to 53.6 in April.
It comes after new employment data published by the Bureau of Labor Statistics last week showed that job openings rose by 731,000 in April to reach 7.618 million, the highest level since November 2024.
The ADP private payrolls report is also due at 8:15 a.m. ET.
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