U.S. Treasury yields hit 4.95% after oil surges above $100 a barrel
Treasury yields climbed to multi-year highs as geopolitical tension drove crude oil prices above $100, temporarily overshadowing soft inflation data before traders anticipated the August CPI report.
U.S. Treasury yields surged to multi-year highs amid escalating Middle East tensions and soaring oil prices. The 10-year note yield topped 4.95% on Thursday, its highest level since October 2023, as West Texas Intermediate crude futures jumped over $100 per barrel. Conflict between the U.S. and Iran entered its seventh month, pushing both U.S. and international Brent crude to their highest settlement prices in May. During regular trading, the Dow fell more than 300 points while oil retreated slightly, yet markets remained focused on inflation risks. Traders analyzed a rising producer price index, which showed wholesale prices up 0.4% last month, consistent with consensus forecasts for the all-items consumer price index. Economic officials and investors closely watched these figures ahead of next week's Federal Reserve interest rate decision. Meanwhile, Hong Kong saw its Mandatory Provident Fund assets reach HK$1.67 trillion as policymakers considered expanding investment options for the retirement scheme.
