Investing.com - U.S. government debt yields rose on Wednesday after U.S. President Donald Trump announced he was withdrawing the U.S. from the Iran nuclear deal, pushing the 10-year bond yield back above the psychologically important 3% level.
The yield on 10-year U.S. Treasury notes rose as high as 3.014% to the strongest level in two weeks as a rally in oil prices boosted inflation expectations. It was last at 3.012%.
A rise above the high of 3.035% reached on April 25 would take the U.S. 10-year yield to its highest since early 2014. Bond yields move inversely to prices.
On Tuesday, President Donald Trump pulled the U.S. out of the international nuclear deal with Iran, raising the risk of conflict in the Middle East and a knock-on effect for global oil supplies and the global economy.
Rising yields have come amid markets starting to price in four interest rate hikes by the Federal Reserve this year, rather than the three signaled by policy makers.
Two-year Treasury yields rose as high as 2.53%, their highest in nearly a decade.