Rising energy costs and persistent inflation data push benchmark yields toward levels last seen in early 2023.
Benchmark U.S. Treasury yields surged Friday, approaching one-year highs as investors priced in sustained inflationary pressures. The 10-year yield rose above 4.3%, its highest level since November 2023, driven by stronger-than-expected consumer price data and climbing oil prices.
Earlier this week, the Consumer Price Index (CPI) showed core inflation remaining sticky, reinforcing expectations that the Federal Reserve may delay rate cuts. Comparable moves were last observed in March 2023, when yields spiked amid similar inflation concerns.
Markets reacted with selling pressure across the curve, as equities dipped and the dollar strengthened against major currencies.