Treasury Yields Soar to 2007 Highs Amid Strong Economic Data and Higher Oil Prices
US Treasury yields surged to their highest level since July 2007 on Wednesday, driven by stronger-than-expected economic data and higher oil prices.
The 10-year Treasury yield rose to 5.135%, its biggest one-day move since April 7, breaking through the key 5% level and accelerating further.
The two-year Treasury yield reached its highest level since May 2024 at 4.947%, while the 30-year yield gained over 10 basis points to 5.415%, matching levels last seen in mid-2007.
The surge was fueled by S&P Global's report of stronger-than-expected business activity in September, with the services purchasing managers' index reaching its highest level in nearly five years at 58.7.
Federal Reserve Governor Michael Barr commented on the data, stating that 'further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion.'