US 10- and 30-year Treasury yields hit two-month highs on oil surge
Brent crude rose back toward and above $100 a barrel as fears of a wider Iran conflict lifted inflation concerns and increased bets on further Federal Reserve tightening.
Summary
U.S. Treasury yields climbed as Brent crude moved back toward, and according to a later update above, $100 a barrel, sharpening concerns that energy-driven inflation could keep the Federal Reserve on a tighter path. The two-year Treasury yield rose about 4 basis points to 4.34% on Thursday, while the 10-year hit a new high for the year and the 30-year rose to 5.19%, as traders increased bets on another Fed rate hike.
Terms & Concepts
- 10-year Treasury yield: The return investors demand to hold U.S. government debt maturing in 10 years, often used as a benchmark for borrowing costs and interest-rate expectations.
- Federal Reserve rate hike: An increase in the U.S. central bank's benchmark interest rate, typically used to try to curb inflation and cool demand.
- Brent crude: The main international oil benchmark, whose price is closely watched because higher energy costs can feed into inflation and affect broader financial markets.