10-year Treasury yield jumps to 4.57% as jumping oil prices reignite inflation fears

U.S. Treasury yields rose on Wednesday, led higher by soaring oil prices, after President Donald Trump said at the NATO summit in Turkey that he thinks the ceasefire with Iran is over.

The yield on the 10-year Treasury note — the main benchmark for mortgages, auto loans and credit card debt — was last seen more than 3 basis points higher at 4.561%.

Shorter- and longer-term yields also moved higher. The yield on the 2-year Treasury note, which typically tracks short-term Federal Reserve interest rate decisions, was up by more than 3 basis points at 4.197%.

Meanwhile, the 30-year Treasury yield, which traditionally moves on geopolitical events, climbed more than 1 basis point to 5.061%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.

Trump's comments pushed oil prices higher, leading to worries of higher inflation and putting upward pressure on yields.

Brent crude futures, the international price benchmark, jumped 5.5% to $78.20 per barrel. U.S. West Texas Intermediate futures were 5.3% higher at $74.15.

As traders gauge how Trump's comments are likely to shape borrowing costs longer term, they are also awaiting the Federal Open Market Committee's June meeting minutes, published later Wednesday, for more monetary policy insights under new Fed chair Kevin Warsh.

Separately, the Mortgage Bankers Association's latest weekly average 30-year fixed rate — a key barometer of U.S. housing affordability — is due out later. The average 30-year fixed mortgage rate for loans up to $806,500 fell slightly to 6.57% from 6.59% for the week ending July 1.