The yield on the US 10-year Treasury note edged up to 4.99% on Monday, its highest level since 2007, as another surge in oil prices was expected to add to inflationary pressures and worsen the price outlook, strengthening the case for further Fed tightening. Traders see nearly an 89% chance that the Fed will deliver a 25 bps rate hike this week, which would be its first increase in borrowing costs since 2023. Policymakers will also release fresh economic forecasts, with traders looking for any guidance on the future path of interest rates. Meanwhile, the yield on the 2-year Treasury note, which is more sensitive to short-term Federal Reserve policy, edged up to 4.66%, its highest level since mid-2024. The yield on 30-year Treasury bonds, which are more sensitive to longer-term inflation and geopolitical risks, topped 5.36%, approaching the highs last seen in 2004 and touched last week.