US 10-Year Treasury Yield Hits 4.56% as Hormuz Closure Fuels Inflation Fears

9 articles · Updated · CNN · May 26

The 10-year Treasury yield has climbed to about 4.56% from 4.34% on March 30, reaching a one-year high as traders price in a longer Fed pause and possible rate hike later in 2026.
Oil near $100 a barrel, up more than 68% this year, and the still-closed Strait of Hormuz have lifted inflation expectations, while the nearly three-month US-Israeli war with Iran keeps pressure on energy markets.
Higher yields are raising borrowing costs across mortgages and loans, adding strain on consumers even as University of Michigan sentiment sits at record lows and auto-loan delinquencies flash warning signs.
The S&P 500 has still posted eight straight weekly gains and sits less than 0.5% from another record, but the rally is narrow: since the Iran war began, the index is up 8.6% while the equal-weighted version has gained less than 1%.
With GDP tracking 4.3%, investors are balancing resilient growth against sticky inflation; Barclays says stock pressure could intensify if core CPI, now 2.8%, rises above 3% in coming months.

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