# Bond yields hit a 19-year high as oil tops $105

> Record diesel prices and a Middle East war have Wall Street betting the Fed raises rates on Wednesday for the first time in three years.
- Title: Bond yields hit a 19-year high as oil tops $105 | Shortify
- Summary: Record diesel prices and a Middle East war have Wall Street betting the Fed raises rates on Wednesday for the first time in three years. Energy shocks from…
- Keywords: interest rates, federal reserve, treasury yields, oil prices, inflation, news, entertainment, Bond, yields, hit, 19-year, high
- Source: New York Post — https://nypost.com/2026/09/15/business/10-year-treasury-yield-soars-oil-surges-above-105-as-fed-expected-to-hike-interest-rates
- Published: 2026-09-15T19:36:30+00:00
- Read time: 1 min
- Topics: interest rates, federal reserve, treasury yields, oil prices, inflation, news, entertainment
## Yields at a 2007 high
The 10-year Treasury yield touched 5.041% on Tuesday, its highest in 19 years, before settling near 5% as traders bet on a Fed rate hike.
## Diesel is doing the damage
Diesel hit a record $6.27 a gallon amid the Iran war. Most food and clothing moves by truck, so economists warn those costs spread across the economy.
## Oil climbs, stocks slide
Brent crude jumped 2.9% to $108.76 on fears that supply through the Strait of Hormuz stays disrupted. The Dow fell 465 points and the Nasdaq lost 0.8%.
## Borrowing gets more expensive
The 30-year yield rose to 5.368% and the 2-year to 4.665%. Higher yields push up rates on mortgages, auto loans and business loans, making affordability worse.
## A hike looks almost certain
Markets see a 94% chance of a quarter point hike to 3.75% to 4%, the first in three years. Morgan Stanley and Goldman Sachs, the last holdouts, now expect at least two.
## A divided Fed decides
White House adviser Kevin Hassett argued inflation is cooling. Under Chair Kevin Warsh, officials are split on whether hiking now is too soon or already too late.

> But again, we respect the decision that the Fed makes.
## Key takeaway

Energy shocks from the Iran war are pushing inflation fears into bond yields, so borrowing costs for mortgages, cars and businesses are rising even before the Fed moves.