U.S. Treasury yields have risen as expectations for Federal Reserve rate cuts in 2026 decrease, driven by ongoing inflation concerns linked to Middle East tensions and a robust U.S. labor market. Weekly initial jobless claims remain steady at 213,000, indicating employers' reluctance to lay off workers. The January import price index increased by 0.2%, falling short of forecasts. Market projections suggest a slowdown in February's non-farm payroll growth to 50,000 from January's 130,000. Futures markets now anticipate only one Fed rate cut this year, down from three previously expected. The 10-year Treasury yield has increased to 4.134%, while the 2-year yield has risen to 3.586%.