The yield on the US 10-year Treasury note rose to around 4.35% on Monday as investors weighed the latest escalations in the Iran war after President Donald Trump set a new deadline on Iran and stepped up threats against its power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Tehran rejected the latest demand and kept up strikes on energy assets across the Middle East, while keeping the critical waterway effectively shut. The ongoing conflict has pushed energy prices higher, stoking inflation concerns and fueling expectations that the Federal Reserve may pause rate cuts or even raise borrowing costs later this year. Data released during Friday’s holiday showed the US economy added 178K jobs in March, nearly triple the 60K forecast, while the unemployment rate edged down to 4.3% from 4.4%. Investors are now turning to the latest FOMC minutes for further signals on the central bank’s policy path.
