Analysis: The Federal Reserve may raise interest rates as soon as next week, with U.S. Treasury yields hitting year-to-date highs

Odaily reported that due to the threat of an escalating war in Iran pushing up oil prices, U.S. Treasury yields have risen to their highest levels of the year, with markets anticipating that the Federal Reserve could raise interest rates as early as next week. The two-year Treasury yield, which is highly sensitive to Fed policy expectations, rose about 4 basis points on Thursday to approximately 4.34%, reaching its highest level since the start of 2025. The ten-year Treasury yield hit a new year-to-date high, while the thirty-year yield climbed to 5.19%, slightly below its highest level since 2007.

As Houthi rebels claim to have attacked a commercial vessel for the first time in recent months, Brent crude oil prices are slowly recovering to $100 per barrel. This upward trend continues to pressure the U.S. Treasury market and has led traders to increasingly believe that the Fed, under the leadership of (Kevin) Warsh, could raise rates this year soon. (Jin Shi)