10-year Treasury yields rise 8 bps to 4.54%, the highest level since May 2023, as bond markets signal growing inflation concerns.
US Treasury yields climbed sharply across the curve, with the 10-year yield rising 8 bps to 4.54%, its highest level in nearly a year. The move reflects mounting worries over inflation and a deteriorating global economic outlook, as key thresholds like 5% for 30-year yields were breached earlier this week.
The 2-year yield also rebounded above 4%, reversing a decline to 3.70% in April. This shift marks a significant momentum change, as yields had struggled to sustain levels above 4% in recent months. The bond market rout contrasts with weeks of equity gains, signaling a broader reassessment of risk.
The surge in yields triggered a risk-off wave, with S&P 500 futures down 1% and Nasdaq futures falling 1.3%. The dollar strengthened, pushing EUR/USD down 0.3% to 1.1630 and GBP/USD down 0.4% to 1.3345.