Traders work on the floor at the New York Stock Exchange (NYSE) in New York, US, on Monday, Aug. 25, 2025. Photographer: Michael Nagle/Bloomberg via Getty Images
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Treasury yields edged lower Tuesday as investors weighed escalating tensions in the Middle East and rising oil prices ahead of the Federal Reserve’s policy decision.
The benchmark 10-year Treasury yield was almost 2 basis points lower at 4.202%, while the 30-year Treasury bond yield was down a fraction, to 4.854%. The 2-year Treasury note yield also fell almost 2 basis points, to 3.665%.
One basis point equals 0.01%, and yields and prices have an inverse relationship.
Oil prices jumped on Tuesday as questions remained over whether a U.S.-led coalition would protect shipping through the Strait of Hormuz. Ship movements through the vital shipping route have plunged after Iranian attacks on tankers, fueling one of the largest disruptions to global oil supply in history.
International benchmark Brent crude gained 2% to around $102 per barrel, while U.S. West Texas Intermediate also rose about 1%, to about $95 per barrel.
The U.S. has urged allies to send naval forces to protect tanker traffic through the strait.
Investors are also turning their attention to the Federal Reserve’s second policy meeting of the year, set to conclude on Wednesday. Wall Street is nearly unanimous in thinking the central bank will keep its benchmark lending rate at 3.50% to 3.75%.
Separately, President Donald Trump said Monday the U.S. has asked to delay his planned meeting with Chinese President Xi Jinping in Beijing by “a month or so” due to the ongoing war with Iran.
Trump was expected to travel to China at the end of March for the meeting with Xi.
But when asked in the Oval Office on Monday afternoon if the trip was still on, Trump said: “I don’t know, we’re working on that right now.”
