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Bond yields climb as oil gains revive inflation risks
The 10-year yield rose to 4.65% and the 30-year reached 5.14%, with the 30-year logging its longest stretch above 5% since 2007.
Bond yields continued rising Wednesday as oil prices increased amid an escalated Middle East conflict. Yahoo Finance reported that the 10-year Treasury yield rose to 4.65%, while the 30-year yield climbed to 5.14%.
The move kept both yields above key psychological levels, raising renewed concern about sticky inflation and mounting debt, particularly as the US attacked Iran for the 11th straight day. Investors focused on the Strait of Hormuz, where oil flow remains a central point of contention.
While markets had largely brushed off earlier oil gains as investors focused on artificial intelligence growth themes, Capital.com analyst Daniela Hathorn said the balance could change if Brent approaches and stays near $100. Yahoo Finance also noted Brent hovered near $93 per barrel on Wednesday.
The selloff in bonds also reflects how oil-driven inflation risk could influence Federal Reserve expectations, even as worries about a Fed rate hike had eased after softer-than-expected inflation data. Yardeni Research said the June CPI report reduced urgency, but that at least one rate hike remains the base case this year if the broader inflation picture worsens.
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