What happened: Long dated bonds stayed elevated on Thursday as oil prices jumped.
What’s behind the move: The 10-year Treasury yield (^TNX) rose to 4.91%, hitting its highest level since 2023. Meanwhile, the 30-year Treasury (^TYX) yield climbed to 5.35%.
Treasury prices, which move inversely to yields, were under pressure as Brent (BZ=F) crude oil jumped to $105 and wholesale inflation advanced largely in line with expectations
What else you need to know: The market has increasingly been pricing in a Fed rate hike when policy makers meet next week.
Interventions from Treasury Secretary Scott Bessent, including an upsized bond buyback have done little to bring long dated yields lower.
Yields globally have been rising amid ballooning government spending and rising inflation. Investors in turn have demanded a higher risk premium in order to hold long dated government debt.
Increasing AI spending has also created mounting corporate bonds, competing for investments.
Ines Ferre is a senior business reporter for Yahoo Finance.
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