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Rising Treasury yields add pressure to stocks and gold

The jump in 10-year yields to about 4.8% is driving higher global borrowing costs ahead of major central bank decisions and the US CPI report.

Reported · Written up by our desk · Government Bonds

Bond yields moved higher again at the start of the week, keeping pressure on broader markets, with 10-year US Treasury yields touching about 4.8%, the highest level since 2023.

In the long end, 30-year yields in the US were edging toward about 5.3%. Outside the US, the article points to multi-year or multi-decade high borrowing costs, including 10-year Germany yields around 3.39%, the highest since 2011.

Forexlive said the tighter bond market environment is reflecting fiscal and inflation risks, while also noting oil prices have risen again, adding upside pressure to the inflation outlook. The timing is especially sensitive with the US CPI report scheduled for Friday and key central bank decisions from the ECB, the Fed, and the BOJ on the near-term calendar.

The piece also linked the yield-driven shift to equity and precious metals markets, saying higher Treasury yields lift the discount rate used for future earnings, which can be a problem for richly valued growth and tech stocks, while gold faces a tug-of-war as higher real yields typically weigh on prices but inflation worries and geopolitical tensions can support them.

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