U.S. Navy Blockade of Strait of Hormuz Pushes Treasury Yields Higher

The 10-year U.S. Treasury note yield rose more than 1 basis point to 4.333%. The 2-year Treasury note yield rose more than 2 basis points to 3.8242%. The 30-year Treasury note yield advanced less than 1 basis point to 4.923%. These movements reflect investor reactions to the U.S. Navy's process of blockading ships entering or leaving the Strait of Hormuz. The blockade follows the failure of negotiations between Washington and Tehran over the weekend to produce an agreement to end the Middle East conflict. This action clouds the inflation outlook, as the most recent U.S. CPI reading came in at its highest level in 2 years, stoking concerns that an energy price shock could spread to other goods and services.