US Treasury Yields Soar to Highest Level Since 2004 Amid Intensifying Bond Selloff

US Treasury yields surged to their highest level since 2004 amid an intensifying bond selloff, raising concerns about higher borrowing costs and inflation. The 30-year Treasury yield reached a peak of 5.5016% on Thursday before easing slightly, while the benchmark 10-year yield climbed to 5.1751% on Friday, its highest level since 2007.

The global bond market impact was significant, with Japan's 10-year government bond yield reaching 3.115%, its highest since 1996, and Australian 10-year yields also increasing. The rise in US Treasury yields is contributing to higher borrowing costs worldwide, putting additional pressure on equity valuations.

Inflation concerns have been exacerbated by rising oil prices, with Brent crude oil at around $105 a barrel on Friday, following a 3% increase in the previous session. Markets are now pricing in a 73% probability of a Fed rate increase as soon as next month, up from approximately 53% earlier in the week.