US Treasury yields climbed Friday as hawkish central bank signals and Brent crude above $100 dampened expectations for Fed rate cuts. Two-year yields rose to 3.83%, five-year to 3.91%, down from 61 basis points of expected easing pre-Iran war to just three now. Capital Economics’ James Reilly said inflation pressures make rate cuts unlikely soon. The Fed, ECB, and BoE held rates but signaled readiness to act against inflation amid Middle East uncertainty.

2026-03-20

US Treasury yields climbed Friday as hawkish central bank signals and Brent crude above $100 dampened expectations for Fed rate cuts. Two-year yields rose to 3.83%, five-year to 3.91%, down from 61 basis points of expected easing pre-Iran war to just three now. Capital Economics’ James Reilly said inflation pressures make rate cuts unlikely soon. The Fed, ECB, and BoE held rates but signaled readiness to act against inflation amid Middle East uncertainty.