Dollar Surges as Yields Jump to Highest Levels in Over a Decade

The US dollar has strengthened as Treasury yields surged, pushing the 10-year rate to its highest level since 2007 and the 30-year rate to a peak not seen in over two decades.

This shift reflects the widening policy divergence between the Federal Reserve and other central banks, which is also tightening financial conditions through higher borrowing costs and more challenging equity valuation mathematics.

Energy prices have added another strain on the market, with Brent crude rising above $100 a barrel, complicating the inflation outlook even as interest rates cannot address supply disruptions.