Euro yields moved higher on Tuesday, reflecting renewed pressure on fixed‑income markets as oil prices edged toward the $100‑a‑barrel threshold and central‑bank hawkishness intensified.
The US 2‑year Treasury yield rose to 4.381%, its highest level since 2025, while the 10‑year benchmark held near 4.795%. These moves were underpinned by a robust US labour market, with non‑farm payrolls adding 162,000 jobs.
Brent crude surged toward $98 a barrel, briefly topping $99, and closed in sight of the psychological $100 level. The price advance was linked to heightened geopolitical risk after Tehran threatened energy infrastructure in the Persian Gulf.
Analysts noted that a triple‑digit oil price could trigger cost‑push stagflation, compelling major central banks to maintain restrictive policy despite slowing growth. The Federal Reserve is expected to raise rates at its upcoming meeting, while the European Central Bank is also seen as poised for a hike.
Market participants are watching the Federal Open Market Committee meeting scheduled for Sept. 15‑16 and Friday’s US Consumer Price Index release for further cues on monetary policy direction.
