Treasury yields tick up as investors weigh oil surge, Iran tensions and looming Fed decision

Treasury yields edged higher Tuesday as investors weighed escalating tensions in the Middle East and rising oil prices ahead of the Federal Reserve’s policy decision.

The benchmark10-year Treasuryyield was more than 2 basis points at 4.239%, while the30-year Treasurybond added almost 3 basis points to yield 4.887%. The2-year Treasurynote yield was little changed at around 3.686%.

One basis point equals 0.01%, and yields and prices have an inverse relationship.

U.S. PresidentDonald Trumpsaid Monday that the U.S. has asked to delay his plannedmeeting with Chinese PresidentXi JinpinginBeijingby “a month or so” due to the ongoingwarwithIran.

Trump was expected to travel to China at the end of March for the meeting with Xi.

But when asked in the Oval Office on Monday afternoon if that trip was still on, Trump said: “I don’t know, we’re working on that right now.”

Oil prices jumped more than 3% on Tuesday as uncertainty lingered over a U.S.-led coalition to protect shipping through the Strait of Hormuz. Ship movements through the vital shipping route have plunged after Iranian attacks, fueling one of the largest disruptions to global oil supply in history.

International benchmark Brent crude gained 3.43% to $103.65 per barrel, while the U.S.West Texas Intermediaterose 3.85% to $97.08 per barrel.

The U.S. has been urging allies to send military forces to protect tanker traffic through the strait.

Investors are also turning their attention to the Federal Reserve’s second policy meeting of the year, set to conclude on Wednesday.