US Treasury Yield Surges Above 5 Per Cent Amid Inflation Fears

The US Treasury yield breached 5 per cent for the first time since 2023 as concerns over inflation and rising oil prices triggered a sell-off in government bonds. The 10-year Treasury note yield briefly reached 5.01 per cent during trading on Monday, before retreating to settle at 4.96 per cent.

The sharp increase in bond yields poses a challenge for the Trump administration, which has sought lower borrowing costs ahead of the November 3 midterm elections. President Donald Trump has called for lower interest rates, while Treasury Secretary Scott Bessent has taken steps to contain long-term yields.

The surge in US Treasury yields is also reflected in other global markets, with government bond yields rising in Europe and Japan. German 10-year yields touched a 15-year high, while British government bond yields reached levels not seen in 19 years.