U.S. Treasury Yields Rise to Year-Highs, Dollar Surges Amid Strong Jobs Data and Middle East Tensions

U.S. Treasury yields, particularly at the front-end of the curve, rose to their highest levels in over a year on Monday, driven by the stronger-than-expected May jobs report released last week and renewed Middle East tensions. The benchmark 2-year Treasury yield climbed above 4.18%, marking a new cycle high since early 2025. The U.S. dollar also surged to its highest levels since early April.