Fed Rate Hike Looms as Crude Oil Nears $100 Psychological Threshold

U.S. Treasury yields are on the rise due to growing expectations of an imminent Federal Reserve interest rate hike and the threat of crude oil prices reaching $100 a barrel.

The two-year U.S. Treasury yield has reached its highest level since 2025, at 4.381%, following last week's hotter jobs report. The benchmark 10-year U.S. Treasury yield remains anchored near 2025 highs at 4.795%.

Market participants are bracing for tighter monetary policy from the American central bank ahead of the Federal Open Market Committee's (FOMC) September meeting. Brent crude is rapidly closing in on the $100 psychological milestone, threatening to trigger severe cost-push stagflation and forcing central banks to maintain restrictive interest rates even as economic growth slows.