Yields ease, but Iran war keeps rate-hike bets alive

US 10-year Treasury yields eased from 18-month highs as oil prices pulled back, but rate-hike bets remain elevated due to the Iran war escalation. Fed funds futures now price a 36% chance of a Wednesday hike, up sharply from 13% a week ago, with the benchmark rate potentially reaching around 4.20% by April from the current 3.50%-3.75% band. US missiles struck targets across Iran on Friday after President Trump vowed major military punishment, reviving inflation concerns.