Treasury yields climbed during Monday trading, extending a rally in borrowing costs that has pressured equity markets and increased the cost of global capital. The benchmark 10 year note yield rose 10 basis points to 5.27%, reaching its highest level since 2007. This peak follows a rapid ascent from 3.97% in late February and an intraday high of 5.25% recorded earlier in the session.

The surge is driven by a stand-off at the Strait of Hormuz, which has pushed oil prices roughly 50% higher than pre-war levels and sent diesel to record highs. Markets now price a 68% chance of a Federal Reserve interest rate hike in October and an additional 90 basis points of tightening through late next year. Treasury Secretary Bessent has requested leniency from the Fed as resurgent inflation fears mount.