US Treasury yields hit highest since 2004, 30-year at 5.53%
US Treasury yields just reached levels not seen since 2004, with the 30-year bond hitting 5.53% and the 10-year note topping a fresh multiyear high above 5.22%.
This jump happened after stronger-than-expected consumer sentiment reports, which basically means people are feeling more positive about the economy.
Izaac Brook, US rates strategist at RBC Capital Markets, described it as a "vacuum," with no technical barriers, yields just kept climbing.
Long-term Treasury yields rise, short-term dip
Long-term yields went up while short-term ones actually dipped, showing investors are cautious about what's next for midterm bonds.
Even though oil prices have dropped (which usually brings yields down), expected Fed rate hikes and higher energy costs are still pushing long-term rates higher.
As Citigroup economist Andrew Hollenhorst put it, rate hikes tied to energy prices are keeping pressure on Treasury yields, a big change from July when the 30-year yield was under 5%.