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Long-term Treasury yields hit 5.33% as oil and inflation worries grow

A jump in Brent crude above $90, linked to Middle East tensions, lifted long-term yields across major economies and could pressure mortgage and other consumer borrowing costs.

Reported · Written up by our desk · Government Bonds

Long-term borrowing costs surged again across major economies, with concern over inflation, high government debt levels, and large-scale spending on artificial intelligence weighing on bond markets, BBC Business reported.

In the United States, the 30-year borrowing rate rose to 5.33% on Tuesday, the highest since June 2007, while UK long-term debt reached 5.85%. Germany and Japan also saw similar increases in long-term yields, according to the report.

Rising oil prices were cited as a key driver, with Brent crude, the global benchmark, moving above $90 amid heightened tensions in the Middle East. The article linked the move to threats involving Oman and to the Strait of Hormuz, which has faced disruptions for much of the past six months due to the broader conflict around Iran, contributing to supply concerns.

Oxford Economics analyst John Canavan said the inflation risk from higher oil prices, elevated government debt, and uncertainty around the scale and timing of AI investment were all contributing to higher yields. He warned that higher yields can push up mortgage rates and other borrowing costs for consumers, and may raise financing costs for companies as they pay more to borrow.

Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%

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