Bond Yields Rise to Highest Levels in Years, Weighing on Stocks

US and European stocks traded mainly lower on Tuesday as bond yields rose to their highest levels in years. The 30-year Treasury yield touched 5.62 percent, a level not seen for 24 years, while the benchmark 10-year yield stood at 5.25 percent.

The Dow Jones fell 0.26 percent, the Nasdaq index dropped 0.09 percent, and the broader S&P 500 index lost 0.17 percent, with investors waiting for key inflation data due on Wednesday and official jobs numbers on Friday.

However, oil prices had retreated from a recent surge, with Brent crude trading above $102 per barrel and US crude at around $89 per barrel. IG analyst Axel Rudolph said the current slide in oil prices reflects growing hopes that Middle East tensions can ease.