Commodities
US Government Bond Yields Soar Amid Oil Price Volatility and Rate Hike Uncertainty
US government bond interest rates have been rising sharply due to inflationary pressure caused by volatility in international oil prices.
The 10-year Treasury yield reached its highest level since 2007, at 5.265%, while the 30-year Treasury yield hit 5.612%, a 24-year high.
Oil prices fell after Saudi Arabia announced it would resume crude exports through the Red Sea, but inflation remains a concern due to the prolonged war and high-interest corporate bonds.
The Federal Reserve's (Fed) potential interest rate hike in October or December is also contributing to the increase in bond yields. Fed members have differing opinions on the need for further rate hikes, with some arguing that another hike could be necessary to bring prices back down.