US Treasury yields hit multiyear highs as a sharp rise in oil prices revived inflation concerns and boosted bets on a Federal Reserve rate hike. The 10-year yield approached 5%, while rising government debt supply and fiscal worries added pressure to bonds ahead of crucial US inflation data.

US Treasury yields surged as Brent crude topped $100 per barrel, with the two-year yield hitting 4.42% and traders repricing Federal Reserve rate

Rising oil prices and mounting fiscal worries also sent the benchmark 10-year U.S. Treasury yield to its highest level since 2023 on Wednesday. It was last at 6.84%.