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30-year Treasury yield rises to 5.324% as US-Iran ceasefire ends
The 10-year Treasury yield climbed to 4.736% as investors weighed renewed inflation risk after the ceasefire ended without an agreement and oil pushed above $91 a barrel.
Bond yields across major developed markets rose again after the US-Iran ceasefire ended without an agreement, with investors increasingly focused on inflation risk and higher long-term rates. The Guardian Economics reported that the 30-year US Treasury yield climbed to 5.324% on Tuesday, its highest level since June 2007.
In the US, the 10-year Treasury yield rose to 4.736%. The outlet also said Japan’s equivalent government bond yield reached 2.945%, while the UK’s 10-year gilt yield rose to 5.076%.
In Europe, Germany’s 10-year bond yield rose to the highest level since 2011, and France’s 10-year yield hit a 16-year peak. The Guardian Economics added that bond prices fall as yields rise.
The piece linked the move to worsening inflation expectations, citing renewed concerns that higher energy prices could feed through to inflation, along with fiscal pressures as governments increase defense spending. It also noted that long-dated yields can reflect fears about government borrowing levels and investors demanding greater compensation for holding long-dated debt.