Rising 10-year and 30-year Treasury yields reach levels not seen since 2007, weighing on equity valuations amid inflation concerns.
The 10-year Treasury yield rose 6 basis points to 4.68% Tuesday, while the 30-year yield increased 5 basis points to 5.2%, its highest since July 2007. Bond yields, which move inversely to prices, are testing key psychological levels for investors.
The sell-off in bonds accelerated after oil prices surged following geopolitical tensions in the Middle East. Stocks, which had reached record highs on strong earnings, now face headwinds as yields remain elevated above critical thresholds.
Analysts warn that sustained high yields could limit equity gains, even with strong earnings, by capping price-to-earnings multiples on benchmarks like the S&P 500.