US Treasury yields fell on Tuesday as investors piled into the traditional haven following a federal holiday and amid the escalating Israel-Hamas war that has killed over 1,000 people on both sides.
The war has affected the market as oil prices already shot up globally amid reports that the war in Gaza entered day 4 in which 900 Israelis were killed and 2,400 were wounded in the war with Hamas.
According to CNBC, U.S. Treasury yields rose Friday, after the latest jobs data came in better than economists anticipated.
The yield on the 10-year Treasury was up 8 basis points at 4.799%. It had hit a 16-year high at 4.887% earlier on Friday, but eased from its session highs. The yield on the 2-year Treasury was last trading at 5.085% after rising by 6 basis points.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Reuters reported that oil prices surged 4% on Monday, recouping some of last week's steep losses, as military clashes between Israel and the Palestinian Islamist group Hamas ignited fears that a wider conflict could hit oil supply from the Middle East.
Brent crude settled $3.57, or 4.2%, higher at $88.15 a barrel. U.S. West Texas Intermediate crude closed at $86.38 a barrel, up $3.59 or 4.3%. At their session highs, both benchmarks spiked by more than $4, or over 5%.
