US 30-year yield on Wednesday, October 7 jumped 5 basis points to 5.70%, highest since 2002 as oil prices climbed, while investors awaited a closely watch minutes from the Federal Reserve's last meeting, Bloomberg reported. This comes days after 10-year Treasury yield climbed as much as six basis points to 5.34%, crossing its 2007 peak.
The benchmark 10-year Treasury note yield climbed nearly 6 basis points to 5.326%.
Government debt has been rising across the world as higher oil prices, driven by the war in the Middle East extend across the global economy, leading investors to expect futher interest rate hikes by central banks. High government borrowing and strong investment in artificial-intelligence infrastructure is adding to the demand for capital, raising borrowing costs.
Last month, yields of the longest-dated US Treasuries surged to 5.61%, its then highest level since 2002, Bloomberg reported.
The surge in yields came as higher energy prices raised inflationary pressures and strong corporate-debt supply weighed on the market. Reaching the 2002 high is the latest in a series of milestones for the $32 trillion Treasuries market, which is witnessing months-long selloff. Government debt has been volatile around the globe as elevated oil prices, driven by the war in the Middle East has impacted the global economy, pushing investors to bet central banks including the Federal Reserve, which is likely to raise interest rates.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.