[Traders Raise Expectations for Fed Rate Hike, 50% Chance of Hike as Early as October] Odaily Planet Daily News: Signs of a deadlock in peace talks between the U.S. and Iran have led to a drop in U.S. Treasury prices, sparking concerns that high energy costs will exacerbate inflation and prompt the Federal Reserve to raise interest rates. Monday's sell-off pushed yields higher in the $31 trillion U.S. Treasury market, with the 10-year Treasury yield rising about 6 basis points to nearly 4.5%, while crude oil prices surged more than 7%. The two-year Treasury yield, which is most sensitive to Fed policy expectations, also rose about 6 basis points to 4.07%. Previously, Iran suspended indirect talks with the U.S. in protest of Israel's actions. Traders have increased their expectations that the Fed's next move will be a rate hike. The swaps market shows traders have fully priced in one rate hike by March 2027 and see a 50% chance of a hike as early as October. (Jin10)