10-year Treasury yield climbs to a 24-year high amid relentless global bond sell-off
Treasury yields were higher on Thursday as investors kept selling government debt.
TL;DR
- U.S. 10-year Treasury yield hit its highest level since April 2002, exceeding 5.327%.
- The 30-year Treasury bond yield also reached a 24-year high.
- A U.S. manufacturing survey showed a significant increase in prices, with the ISM manufacturing index and its prices component surging.
- Global government borrowing costs are increasing due to fiscal deficits, inflation, and rising interest rates from central banks.
- Bond markets are increasingly correlated with turbulent oil prices, influenced by Middle East tensions.
- Potential decreases in bond yields are linked to a significant drop in oil prices or a resolution in the Middle East.