US 10Y Bond Yield Hits 19-year High

The yield on the 10-Year US Treasury note climbed above 5% on Tuesday, reaching its highest level since July 2007 as the global bond selloff intensified amid surging energy prices, mounting inflation risks and growing fiscal concerns. Oil prices extended their gains as Saudi Arabia’s East-West pipeline remained shut, while Ukraine challenged President Trump’s claim that it had already reached an agreement with Russia to halt attacks on energy infrastructure. Meanwhile, markets are pricing in roughly a 92% probability of a 25-basis-point rate hike by the Fed on Wednesday, which would mark the first increase since July 2023. Traders will also look for signals on further monetary tightening as policymakers contend with upward risks to prices. Additionally, long-term yields were driven higher by surging corporate debt issuance from AI companies, which has limited capital allocation by primary dealers and other financial institutions.

US 10 Year Government Bond Yield increased to 5.02%, the highest since July 2007. Over the past 4 weeks, US 10 Year Note Bond Yield gained 29.50 basis points, and in the last 12 months, it increased 98.60 basis points.

The yield on the 10-Year US Treasury note reached 5% on Tuesday, rising for the fifth consecutive session as elevated oil prices fueled inflation concerns ahead of an expected interest rate hike by the Federal Reserve this week. The benchmark yield is also approaching its highest levels since 2007. Oil prices resumed their climb as Saudi Arabia’s East-West pipeline remained shut, while Ukraine disputed President Trump’s claim that it had already reached an agreement with Russia to halt attacks on energy infrastructure. Meanwhile, markets are pricing in roughly a 92% probability of a 25-basis-point rate hike by the Fed on Wednesday, following hotter-than-expected inflation data last week. Long-term yields were also pushed higher by surging corporate debt issuance from AI companies, which has constrained capital allocation by primary dealers and other financial institutions.