US 10-Year Yield Breaches 5.34%, Highest in 24 Years, as Oil Surge Fuels Inflation Fears

Money & Banking··USGB·Read original
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The yield on the US 10-year Treasury note surged to its highest level since 2002 amid a global bond selloff, after oil prices climbed on Middle East war tensions, stoking inflation concerns and raising expectations that central banks worldwide may need to hike interest rates further. The US 10-year bond yield rose as much as 6 basis points to 5.34% on Thursday, breaching its previous peak set in 2007. Earlier in the week, the US 30-year bond yield also jumped to a 24-year high. Data from Bloomberg indices showed that global government bonds just suffered their worst quarter since 2024, while Thursday's selloff pushed the UK 30-year government bond yield to 6% for the first time since 1998. Some analysts and investors believe US bond yields could also reach that level. Steven Barrow of Standard Bank Advisory said the rise in government bond yields is a long-term structural development, with financial markets adjusting to a New Normal of higher yield levels. The market is now watching Friday's US nonfarm payrolls report, with a Bloomberg survey of analysts forecasting a gain of 85,000 jobs in September. Investors are also tracking remarks from several Fed officials, including Fed Governor Chris Waller. The market currently expects the Fed to raise rates four more times, by 0.25% each, by the end of 2027.

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Others▲
％United States Government Bond 10Y
US-10Y
▲ PositiveMonetaryrelevance

US 10-year Treasury yield rose to 5.34%, its highest since 2002, as oil-driven inflation fears raised expectations of further central-bank rate hikes.

％UK Government Bond 30Y
GB-30Y
▲ PositiveMonetaryrelevance

UK 30-year gilt yield hit 6% for the first time since 1998 amid the global bond selloff and rate-hike expectations.