US Treasury Yields Soar as Oil Prices Skyrocket

The US Treasury market came under renewed pressure on Thursday as the yield on the 30-year bond reached its highest level in over two decades.

Oil prices surged by about 3% to a one-week high after a Houthi missile attack on Saudi Arabia, reviving concerns about supply disruptions and higher inflation.

The yield on benchmark US 10-year notes increased 8.17 basis points to 5.196%, the highest since 2007, while the 30-year bond yield gained 7.96 basis points to 5.4816%, its highest since 2004.

Gennadiy Goldberg, head of US rates strategy at TD Securities, attributed the move higher in Treasury yields to a combination of factors including rising Fed hike expectations, higher growth expectations, and hyperscaler issuance.