Treasury yields climb to 5.14% as oil jumps on Houthi attack reports, TheStreet says

WTI crude rose 2.3% to $103.78 a barrel and gold slipped 0.6% to $4,140 an ounce

Treasury yields rose seven basis points to 5.14% on Monday as oil prices jumped, reviving concerns that energy costs could keep inflation elevated. WTI crude gained 2.3% to $103.78 a barrel.

TheStreet reported that oil rose after news of Houthi attacks on Saudi Arabian oil and airport infrastructure. The move extended a run higher in crude over recent days: Bloomberg reported that Brent crude jumped almost 4% the previous Friday on fears of weekend escalation in the Iran war, with both benchmarks trading near five-month highs amid Gulf tanker attacks and a Ukrainian strike on a Russian oil terminal.

Gold fell 0.6% to $4,140 an ounce, a decline that market participants read as a sign the move was being driven by rates rather than a shift toward safety. Equities took the yield rise in stride: TheStreet reported the S&P 500 advanced 0.41% on the day while the Dow finished down 0.07%. NordFX reported that markets were pricing about an 84% chance the Federal Reserve holds rates steady at its October 27-28 meeting, suggesting the rate move was not tied to expectations of near-term Fed action.

The pairing of a seven basis point rise in yields with a 2.3% jump in crude points to a familiar dynamic in this cycle: energy costs feeding into inflation expectations and pushing up the cost of capital. Gold's decline fits a market more worried about rates staying higher for longer than about growth. If oil keeps climbing, the pressure on long-dated Treasurys and on equity valuations tied to discount rates is likely to persist rather than fade.