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Global stocks face pressure as Treasury yields climb again
U.S. 10-year yields rose to 4.73% and 30-year yields to 5.266%, while the dollar was set to extend its slide toward recent three-month lows.
Global stocks were set for a mostly lower week as stress in global bond markets persisted, with U.S. Treasury yields resuming their climb after a surprise Treasury intervention earlier in the week, according to Reuters.
U.S. Treasury Secretary Scott Bessent said he could further increase government repurchases of Treasuries and raised the idea of fiscal consolidation, but analysts said it was unlikely that sufficient spending cuts could quickly curb a deficit already above 6% of gross domestic product.
Bond-market pressure was still visible in the latest moves, with the 30-year yield up 3 basis points to 5.266% and the 10-year yield up 3.2 basis points to 4.73%. Selling was heaviest in the 2-year Treasury, up 5 basis points on the day to 4.236% after a stronger-than-expected U.S. purchasing managers' report.
Higher yields are expected to lift debt costs globally and weigh on equity valuations as discount rates rise, with the Reuters story noting tech companies are borrowing to fund AI capex. The outlook also intersects with oil prices, which were lifted by a diplomatic deadlock easing in the Gulf, sending crude toward one-month highs.
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