Oil Surge Sends U.S. Treasury Yields Soaring; 30-Year Yield Breaks Above 5.5%

【Financial News, New York — Correspondent Lee Byung-chul】 U.S. Treasury yields rose across the board as international oil prices climbed again. Growing concerns that higher oil prices could reignite inflation, combined with anxiety over global government debt, have intensified selling pressure, particularly on longer-term Treasuries. The yield on 30-year U.S. Treasury bonds has surpassed 5.5% and is hovering at its highest level since 2004.
According to CNBC on the 28th, local time, the 10-year U.S. Treasury yield rose about 5 basis points, or 0.05 percentage points, to 5.23%. The 10-year Treasury is a key benchmark for U.S. market interest rates, influencing mortgage loans, auto loans and credit card rates.
The rise in longer-term yields was even more pronounced. The 30-year Treasury yield, which is sensitive to geopolitical risks and long-term inflation expectations, climbed about 4 basis points to 5.544%. After reaching its highest level since 2004 last week, it is facing renewed upward pressure. The two-year Treasury yield, which is sensitive to the Federal Reserve's monetary policy outlook, also rose by more than 5 basis points to 4.918%. When Treasury yields rise, prices fall.
The factor that put renewed pressure on the bond market was oil prices. WTI futures rose about 2% to $93.91 a barrel. The bond market reflected concerns that continued gains in oil prices could prevent inflationary pressures from easing quickly.
The U.S. Treasury market had already experienced significant volatility last week. The benchmark 10-year Treasury yield climbed to its highest level since June 2007 on the 24th before partially retreating. The 30-year yield also reached its highest level since 2004.



[email protected] Correspondent Lee Byung-chul Reporter