Trump's Iran Rejection Triggers Historic Treasury Selloff as Oil Prices Soar
A historic selloff in the U.S. Treasury market is underway following President Donald Trump's rejection of Iran's proposed cease-fire plan. The 10-year Treasury yield spiked to 5.26% on September 28, a level not seen since 2002.
The sharp increase in oil prices after Trump's decision has investors concerned about accelerating inflation and further Federal Reserve rate hikes. Brent Crude futures rose $0.96 to settle at $105.28 per barrel, while West Texas Intermediate (WTI) futures gained $0.19 to close at $92.60 per barrel.
The surge in Treasury yields has had a ripple effect across global bond markets, with Japan's 10-year government bond yield breaking above 3.08%, its highest since August 1996, and Germany's 10-year bund yield approaching 3.65%.