Ten-year Treasury yield rises to highest since June

The yield on the benchmark Ten-year treasury yield rose to 2.497%, its highest since June 2015 as oil rose to 16-month high on back of the first global oil deal since 2001.

At the time of writing, the 10-yr yield traded at least 2.5 basis points higher on the day. Meanwhile, at the short-end of the curve, the 2-year yield rose 1.6 basis points to 1.149%.

Oil rallied 5% in Asia after the non-OPEC members cut 558K barrels per day. In response, Saudi Arabia it stands ready to cut more than what was agreed on November 30.

The resulting risk-on in the markets reduced demand for the treasuries. Furthermore, rally in oil is also likely to push up inflation expectations, which too is supporting the gains in the treasury yields.