US Bond Selloff Pushes Yield Above 5% Amid Inflation Fears

The US Treasury yield has surged past 5%, its highest level in nearly two decades, causing widespread market unease and pressuring global debt markets. The rise in yields is driven by concerns over inflation and rising sovereign debt.

Central banks are responding to the crisis with some considering halting sales of long-term bonds to stabilize markets. For example, the Bank of England may stop selling 20- and 30-year gilts.

The benchmark yield's influence on global markets is significant, as it sets lending rates not just for the US but nearly every other asset in financial markets. The rise has also rattled stock markets in Asia, with traders waiting to hear from U.S. Treasury Secretary Scott Bessent when he appears before Congress.