US Bond Yields Surge to Highest Levels Since 2007

US bond yields surged to their highest levels in nearly two decades on Wednesday, with the key 10-year Treasury yield reaching 5.12%, a fresh high for this year and its highest level since 2007.

The surge in yields was fueled by new economic data showing strong business activity and intensifying inflation concerns, which raised bets that the Federal Reserve might continue raising interest rates to tamp down inflation.

Business activity accelerated at the fastest rate since July 2021 in September, according to S&P Global data, while input costs surged due to rising energy prices.

The Treasury Department announced an increased buyback operation of up to $6 billion on Thursday, but analysts said it won't change the fundamental forces leading to higher yields.