US Treasury Yield Breaks 5%, Sending Markets Into Downturn

The US Treasury yield broke above 5% on Tuesday, reaching its highest level since 2007. This sent shockwaves through global bond markets and cooled investor risk appetite.

US stock futures also fell across the board in pre-market trading: Nasdaq 100 futures dropped 0.16%, S&P 500 futures declined 0.19%, and Dow 30 futures sank 0.25%.

Rising oil prices, expanding government debt, and funding demand for AI infrastructure contributed to the market's downturn. Oil prices surged with WTI crude reaching $104/barrel and Brent crude hovering near $108/barrel.

Gold (XAUUSD) fell below $4,300/oz, while silver (XAGUSD) traded near $63/oz as the strengthened US dollar index put pressure on precious metals.