The 10-year Treasury yield briefly surpasses 5% amid inflation

The 10-year US Treasury yield briefly hit 5.01% on Monday, reaching its highest level since October 2023, as inflation fears grew alongside rising oil prices tied to the Iran war.

The yield moves inversely to bond prices.

It later eased to around 4.99% as oil prices eased and investors returned to the market.

Longer-term yields are also facing pressure from the huge amount of government debt being issued and companies raising money for major investments, including AI infrastructure.

The Treasury yield increase could make mortgages and other loans more expensive while putting pressure on stocks and economic growth.

Elevated bond yields are part of why the market is watching tomorrow’s Fed announcement, with rates expected to rise for the first time since 2023.