– Investors are fleeing government bonds after back-to-back US inflation reports this week showed mounting price pressures, sending benchmark interest rates to the highest levels in nearly a year.
Most Read from Bloomberg The yield on benchmark 10-year Treasuries rose to the highest since July and 30-year yields traded above 5% as the latest evidence of accelerating inflation pushed traders to almost fully price in a Federal Reserve interest-rate hike in the coming year
The 10-year yield increased almost two basis points on Wednesday to 4.49% after wholesale inflation accelerated in April to the fastest pace since 2022 amid a war-driven rise in energy prices. Yields across maturities were higher by one to three basis points, and the dollar rose. While the increases were small, yields on five- and 30-year Treasuries also reached their highest levels of the year.
The 30-year topped 5.04% for the first time since July ahead of an auction of new bonds of the tenor at 1 p.m. New York time. At that level in the auction, the new bonds would carry a 5% fixed interest rate — the first for the 30-year since 2007.