The yield on the 10-year U.S. Treasury note hit 5 percent in New York on Monday as oil prices climbed on Middle East war fears and inflation worries. Near 1430 GMT, the yield stood at 5.01 percent, its highest level since October 2023. Higher oil prices also pushed both major crude contracts above 100 dollars a barrel, reinforcing expectations of a Federal Reserve rate hike on Wednesday. Analysts also cited the U.S. budget deficit and the artificial intelligence boom as factors putting upward pressure on bond yields.
The Treasury Building is viewed in Washington, May 4, 2021. AP-Yonhap
NEW YORK — The yield on the 10-year U.S. Treasury note hit five percent Monday as oil prices rose further amid a Middle East war that has exacerbated the inflation outlook.
Near 1430 GMT, the yield stood at 5.01 percent, its highest level since October 2023.
The move in the bond market came as oil prices advanced about four percent after Saudi Arabia shut its East-West pipeline — a key export route with Iran's effective closure of the Strait of Hormuz — following drone attacks by Yemen's Houthis.
