1039 GMT - U.S. Treasury yields edge higher but retreat from highs earlier in the day while the dollar trades steady as markets absorb the prospect of a new phase of military escalation in the Middle East. "The week ahead now becomes critical because the market needs to know whether the oil shock is feeding into the inflation data or simply tightening financial conditions through sentiment," Tickmill Group's Patrick Munnelly says in a note. The two-year Treasury yield rises 1 basis points to 4.216%, having hit 4.239%, the highest level since February 2025, earlier in the day, according to Tradeweb data. The 10-year Treasury yield is up 0.2 basis points at 4.570%. The DXY dollar index is steady at 100.943, having earlier traded higher. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 13, 2026 06:39 ET (10:39 GMT)

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