Treasury yields increased on Tuesday as investors monitored a reignition of tensions in the Middle East, with the 10-year yield hitting its highest since January 2025.[1372791][1312106] The expectation had been for falling rates this year, but the war with Iran and its resulting rise in oil prices upended that, leading to a surge in mortgage rates to the highest since June 2025.[1230354][1372791] US Treasury secretary Scott Bessent has sent a signal that he expects the Bank of Japan to raise rates soon, amid the renewed tensions in the Middle East.[1312106][1372791]