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Fed Warns September Rate Hike as Yields Jump

9/2/2026

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Story summary
  • U.S. Treasury yields rose to about 4.8%, the highest level since early 2025.
  • Japan's 10-year government bond yield hit 3%, a peak not seen since 1996.
  • Germany's 10-year bund yield rose to 3.33%, its highest since 2011.
  • Renewed U.S.–Iran fighting lifted Brent crude above $92, fueling inflation worries.
  • Fed Chair Kevin Warsh warned a September rate hike may be needed to curb inflation.