Bond Yields Fall as US Treasury Yield Hits Highest Since 2002

Bond yields fell on Thursday after the benchmark 10-year Treasury yield hit its highest level since April 2002, while stocks and the euro also declined. The yield initially rose to 5.34%, but later decreased to 5.272% by the end of the day.

The surge in bond prices has been driven by soaring energy costs, which have fueled inflation and lifted expectations for growth. This has pushed Treasury yields to attractive levels, according to Oliver Pursche, senior vice president and advisor at Wealthspire Advisors.

Pursche noted that the global bond selloff may be overdone, but warned that it's not yet clear when or if it will end. The 10-year yield posted its biggest quarterly rise this century in the three months to September, with the selling pressure also rippling through bonds in France, Britain, and Japan.

The euro fell to a 17-month low against the dollar, as investors battered European assets. Steven Major, global macro advisor at Tradition, attributed the weakness of the euro to Europe's vulnerability to higher interest rates and energy costs.