Treasury yields hit 2023 highs amid rising Fed rate hike bets, pressuring equities and commodities as oil jumps over $2.93.
US Treasury yields spiked to their highest levels since May 2022, with the 10-year yield climbing 8.5 basis points to 4.547%. The move reflects growing concerns over persistent inflation, fueled by a surge in oil prices and expectations of a 60% chance of a Fed rate hike this year.
The 2-year yield rose 6.6 basis points to 4.052%, reclaiming the 4% threshold after dipping to 3.70% in April. Oil prices led the market shift, with July crude up $2.93 at $99.85 and June contracts trading at $103.99. Precious metals tumbled, with gold down $94 to $4,554 and silver plunging $4.84.
US stock futures turned sharply lower, with S&P 500 futures down 92 points and Nasdaq futures off 500 points. The bond market’s repricing of inflation risks is now overwhelming equity resilience, signaling a defensive shift in investor sentiment.