U.S. benchmark Treasury yields climbed to their highest levels since 2002 as
persistent inflation, large fiscal borrowing and strong growth keep market rate
Elevated expectations. At one point the 10-year yield rose 4bps to 5.33%,
surpassing its 2007 peak; the 30-year also reached its highest level since 2002.
Treasureries have been selling off for months and global government bonds are
under pressure as higher oil prices tied to the Middle East war ripple through
the economy, prompting investors to bet central banks including the Fed will
tighten further. Despite rising borrowing costs, the U.S. economy remains
Resilient and OIS markets have fully priced a Fed hike by year-end.
