Benchmark US government bond yield hits 19-year peak as oil prices surge
The 10-year US Treasury yield hit 5.02 percent on Tuesday for the first time since the 2007 global financial crisis.
The benchmark United States government bond rate has climbed to its highest level in 19 years as traders bet on a Federal Reserve interest rate hike following a new rise in oil prices.
On Tuesday, the 10-year US Treasury yield hit 5.02 percent, a level unseen since the 2007 global financial crisis.
The 10-year Treasury benchmark price influences the lending rate for nearly every asset in US financial markets, including consumer debt and home mortgages.
“Markets are likely to remain focused on the risk that higher crude oil prices could add to inflationary pressures and, in turn, push interest rates higher,” Yokoo Akihiko, an analyst at Mitsubishi UFJ Bank, said in a note seen by the Reuters news agency.