The yield on the benchmark US 10-year Treasury note climbed to its highest level since May 2002 on Wednesday, reaching 5.306% in intraday trading as persistent inflation concerns continued to weigh on government bond markets. The benchmark rate reached 5.306% during the session, narrowly exceeding the peak seen in May 2002 and extending a months-long selloff that has rattled fixed-income investors.
War and inflation drive selloff
Treasury yields, which move inversely to bond prices, have climbed with few interruptions since March, when the outbreak of the Iran war drove energy prices sharply higher and rattled global markets. Despite recent declines in oil prices, investors remain concerned that elevated energy costs could feed into broader inflation and prompt the Federal Reserve to maintain its tight monetary policy stance.
Stronger-than-expected economic activity and mounting…
