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US 10-Year Treasury Yield Hits Highest Since 2007
Confirmed
In Short: The benchmark 10-year US Treasury yield note rose to its highest since 2007, reaching 5.041%, and the 30-year Treasury yield also hit a 19-year record, reaching 5.38%, a level not seen since before the global financial crisis nearly two decades ago.
The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices. The yield reached 5.08%, its highest level since June 2007, driven by stubborn inflation and rising energy costs.
The global Brent crude oil benchmark climbed more than 5%, to about $95 a barrel, while U.S. oil prices climbed back above $102 per barrel. This surge in oil prices has contributed to the rise in Treasury yields, as soaring energy costs fan inflation.
The bond selloff spread to Japan and Europe, with Japan's benchmark 10-year government bond yield rising to a 30-year peak and Germany's 10-year Bund yield touching its highest level since May 2011.
Financial markets expect that the US central bank will raise the benchmark overnight interest rate by 25 basis points to the 3.75%-4.00% range and signal further tightening ahead. The 10-year Treasury yield's rise was its sharpest one-day jump since April 9, 2025, a week after Trump’s tariffs began roiling global markets.
The U.S. 10-year yield gained 87 basis points in the July-September quarter, the biggest quarterly rise since 1994, LSEG data showed. This rise in Treasury yields is now all but certain, driven by stubborn inflation, rising energy prices, and signals from other central banks.
We have had a prolonged selloff in bonds – they have been correlated with oil prices and also we've had strong U.S. data," said Rory McPherson, chief market strategist at Wren Sterling. "We don't have enough buyers who want to buy bonds.
Market focus has been on how long U.S. Treasury yields stay above the psychologically important 5% level, while some investors even weigh the possibility of yields breaching 6%. Treasury yields hitting their highest in decades and threatening stocks, even though tech firms managed to get some boost from AI chipmaker Micron's blockbuster earnings.
The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices. This is the highest yearly purchase since records began.
The global Brent crude oil benchmark surged 42% in the July-September quarter, and the December contract, the current benchmark, was last at $100 a barrel.
The bond selloff spread to Japan and Europe, with Japan's benchmark 10-year government bond yield rising to a 30-year peak and Germany's 10-year Bund yield touching its highest level since May 2011.
The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices.
What this adds
The rise in Treasury yields is now all but certain, driven by stubborn inflation, rising energy prices, and signals from other central banks.
The bond selloff spread to Japan and Europe, with Japan's benchmark 10-year government bond yield rising to a 30-year peak and Germany's 10-year Bund yield touching its highest level since May 2011.
Background
The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices.
What's confirmed
- The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices. The yield reached 5.08%, its highest level since June 2007, driven by stubborn inflation and rising energy costs.
- The global Brent crude oil benchmark climbed more than 5%, to about $95 a barrel, while U.S. oil prices climbed back above $102 per barrel. This surge in oil prices has contributed to the rise in Treasury yields, as soaring energy costs fan inflation.
- The bond selloff spread to Japan and Europe, with Japan's benchmark 10-year government bond yield rising to a 30-year peak and Germany's 10-year Bund yield touching its highest level since May 2011.
- Financial markets expect that the US central bank will raise the benchmark overnight interest rate by 25 basis points to the 3.75%-4.00% range and signal further tightening ahead. The 10-year Treasury yield's rise was its sharpest one-day jump since April 9, 2025, a week after Trump’s tariffs began roiling global markets.
- The U.S. 10-year yield gained 87 basis points in the July-September quarter, the biggest quarterly rise since 1994, LSEG data showed. This rise in Treasury yields is now all but certain, driven by stubborn inflation, rising energy prices, and signals from other central banks.
- We have had a prolonged selloff in bonds – they have been correlated with oil prices and also we've had strong U.S. data," said Rory McPherson, chief market strategist at Wren Sterling. "We don't have enough buyers who want to buy bonds.
- Market focus has been on how long U.S. Treasury yields stay above the psychologically important 5% level, while some investors even weigh the possibility of yields breaching 6%. Treasury yields hitting their highest in decades and threatening stocks, even though tech firms managed to get some boost from AI chipmaker Micron's blockbuster earnings.
- The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices. This is the highest yearly purchase since records began.
- The global Brent crude oil benchmark surged 42% in the July-September quarter, and the December contract, the current benchmark, was last at $100 a barrel.
- The bond selloff spread to Japan and Europe, with Japan's benchmark 10-year government bond yield rising to a 30-year peak and Germany's 10-year Bund yield touching its highest level since May 2011.
- The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices.
What's still developing
- The 10-year yield serves as the benchmark borrowing rate for most common consumer lending in the U.S.
- He argued that yields would have been higher without the Treasury's market interventions.
- Yields have been surging around the world as soaring energy costs fan inflation and as the boom in AI and data center building lifts expectations for growth and for where short-term interest rates will settle.
- It posted its biggest quarterly rise this century in the three months to September, with the selling pressure also rippling through bonds in France, Britain and Japan.
- "We don't have enough buyers who want to buy bonds." That all left European shares under pressure, with the broad STOXX 600 down 0.75% and European banks off 1.8%, although U.S.