US 10-Year Yield Hits Highest Since 2007

The yield on the 10-Year US Treasury note climbed above 5% on Tuesday, reaching its highest level since July 2007 as the global bond selloff intensified amid surging energy prices, mounting inflation risks and growing fiscal concerns. Oil prices extended their gains as Saudi Arabia’s East-West pipeline remained shut, while Ukraine challenged President Trump’s claim that it had already reached an agreement with Russia to halt attacks on energy infrastructure. Meanwhile, markets are pricing in roughly a 92% probability of a 25-basis-point rate hike by the Fed on Wednesday, which would mark the first increase since July 2023. Traders will also look for signals on further monetary tightening as policymakers contend with upward risks to prices. Additionally, long-term yields were driven higher by surging corporate debt issuance from AI companies, which has limited capital allocation by primary dealers and other financial institutions.



