US Treasury yields have surged, with the 10-year yield reaching 4.79%, its highest level since January 2025. Yields on the longest-maturity Treasuries have reached levels not seen since 2006.
The increase is driven largely by surging oil prices, which have intensified inflation worries and bolstered expectations that the Federal Reserve may raise interest rates again. Investors are now awaiting a potentially decisive Federal Reserve meeting expected in the coming weeks.
Other contributing factors keeping investors wary include a gaping budget deficit and another wave of corporate issuance. Additionally, Treasury yields increased on Tuesday as investors monitored a reignition of tensions in the Middle East.