US Treasury Yields Soar to 19-Month High on Oil Price Fears
A broad selloff in US Treasuries pushed the 10-year yield above 4.75% during trading Monday, its highest level in 19 months. The increase was fueled by rising oil prices and Federal Reserve Chair Kevin Warsh's hawkish remarks, which raised the prospect of further interest rate hikes.
The 5-year yield also climbed to its highest since early last year, while the 30-year yield rose 5 basis points to 5.26%. Bond prices and yields move in opposite directions, so as concerns grew that the Fed could raise rates, more investors moved to sell Treasuries, pushing market yields higher.
The selloff spread across maturities, with oil prices adding to the pressure on bonds. International crude soared nearly 3% after President Donald Trump signaled the possibility of further strikes against Iran, rekindling concerns about inflation and fueling expectations of additional Fed tightening.