Treasury yields are little changed as Trump reiterates Iran infrastructure threat, sending oil higher
Treasury yields were relatively unchanged on Tuesday as President Donald Trump again warned the U.S. would strike Iranian civilian and energy infrastructure.
Hollif
A screen displays U.S. President Donald Trump giving an interview with with CNBC at the World Economic Forum (WEF) meeting in Davos, Switzerland, as a trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Jan. 21, 2026.
Brendan McDermid | Reuters
Treasury yields were relatively unchanged on Tuesday as President Donald Trump again warned the U.S. would strike Iranian civilian and energy infrastructure if Tehran did not agree to reopen the Strait of Hormuz before a looming deadline.
The 10-year Treasury yield — the benchmark for U.S. government borrowing — was less than 1 basis point higher at 4.341%.
The yield on the 2-year Treasury note, which are more sensitive to short-term Federal Reserve rate decisions, was also up by less than 1 basis point at 3.852%. The 30-year bond yield, meanwhile, rose more than 1 basis point, reaching 4.903%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
Eyes were on Trump's deadline of 8 p.m. ET Tuesday for Tehran to reopen the Strait of Hormuz. If that is not fulfilled, Trump has threatened to bomb Iranian infrastructure, including power plants and bridges — a sentiment he repeated on Monday. The president has also said it was "highly unlikely" he would extend the deadline further.
On Tuesday morning, Trump said on Truth Social that "a whole civilization will die tonight, never to be brought back again," before adding, "maybe something revolutionarily wonderful can happen, WHO KNOWS? We will find out tonight, one of the most important moments in the long and complex history of the World."
Energy prices have notched higher as Tuesday's deadline approached. Brent crude futures, the global benchmark, rose nearly 1%, trading above $110 a barrel. U.S. West Texas Intermediate futures were last seen 2% higher at above $115 a barrel.
Iranian officials have rejected plans for a temporary ceasefire and have instead called for a permanent end to the conflict.
Several Treasury officials will be speaking on Tuesday. Chicago Federal Reserve president and CEO Austan Goolsbee will be speaking at the Detroit Economic Club on Tuesday. On Monday, Goolsbee said inflation remains a greater challenge for the U.S. economy than employment. Federal Reserve vice chair Philip Jefferson will also speak later on the outlook for the economy and labor market.
