US Yields Edge Higher Amid Rate Hike Expectations and Weighing Oil Prices

U.S. Treasury yields have risen slightly as investors weigh lower oil prices against expectations of further Federal Reserve rate hikes. The two-year yield has reached a fresh two-year high at 4.7879 percent, while the 10-year yield remains below 5 percent after touching its highest level since 2007 last week.

Traders see about a 53 percent chance of another Fed rate increase in October, according to CME FedWatch. This comes as the Federal Reserve raised rates for the first time since 2023 to try to control inflation.

Boston Fed President Susan Collins has expressed support for the Fed's decision, stating that she believes the central bank made the right call despite risks of above-target inflation.