U.S. Treasury yields experienced a notable reversal during the session, opening at a recent low of 3.92% before rallying above the 4% threshold. The 10-Year yield briefly exceeded 4.05% before settling near 4.03%, marking a total increase of 9 bps from the previous close. While initial price action was influenced by geopolitical developments between the U.S. and Iran, the subsequent rally was driven by inflationary concerns. The ISM manufacturing data contributed to the upward pressure, with the prices paid component reaching its highest level in several years. Despite the move higher in yields, volatility as measured by the CVOL index at cmegroup.com trended lower throughout the day after an initial spike. Market participants are now looking toward upcoming economic catalysts, including ADP employment data and the Friday Nonfarm Payrolls report.