U.S. 10-year Treasury yields hit highest levels since 2023 as oil shock drives global bond rates up
Oil prices remain above $100 a barrel following heightened tensions between Iran and the U.S., pushing global yields higher while major currencies like the euro and yen faced weakness ahead of key inflation data releases.
Currency markets remained subdued on Thursday as investors digested rising oil prices and surging global bond yields. Brent crude futures stayed firmly above $100 per barrel after breaking that threshold Wednesday. This fresh energy-induced inflation pressure sent benchmark 10-year U.S. Treasury yields to their highest levels since 2023. The move came despite the disappointment of a longer-dated bond buyback program. Tensions between Iran and the U.S. reached new heights with both sides conducting major attacks on shipping, threatening Middle East energy supply disruptions. Investors weighed these developments alongside expectations of a Bank of Japan rate hike next week. Trading activity paused the Japanese yen's climb to fresh seven-month highs, leaving it trading weaker at 153.70 after being stuck in a tight range for much of the day. The euro and sterling also showed slight weakness against the greenback, trading at $1.1633 and 1.3547 respectively. The dollar index settled at 98.81, inching away from its three-week low. Market attention is now shifting to upcoming macroeconomic data, specifically U.S. producer prices later Thursday and CPI on Friday.
