US 30-year Treasury yield hits 5.34% amid oil-driven inflation concerns
On Thursday, the 30-year US Treasury yield jumped to 5.34%, hitting a level not seen since 2007.
This big move was sparked by rising oil prices, which pushed up inflation worries and made investors expect the Federal Reserve to hike interest rates soon.
Yields went up across the board, with even short-term bonds like the two-year surpassing 4.5%.
Markets see 70% Fed hike
Markets now see a strong chance (about 70%) that the Fed will raise rates next week, and almost everyone expects it by October.
The oil price surge has also shaken global bond markets: UK and euro zone yields climbed as central banks responded to inflation.
To help manage borrowing costs as rates rise, the US Treasury is boosting its long-term debt buyback to $6 billion, having tripled the targeted amount from $2 billion.