The 10-year US Treasury yield rose to the highest level in nearly two decades, reaching 5.04% on Tuesday, marking the highest point since 2007, before the global crisis. The yield had already surpassed 5% on Monday.
The movement is part of a strong global bond selloff wave, driven by surging energy prices, rising debt, and inflation. The decline in bond prices increases pressure ahead of the corporate earnings season.
The most recent stage of this movement occurred after a rise in global oil prices, as risks to Middle East oil supply increase. The benchmark yield surpassed a previously recorded peak in 2023.
