US Treasury yields reach highest since 2002 amid growth, inflation
Big moves in the US bond market: Treasury yields just reached levels we haven't seen since 2002.
The 10-year yield climbed to 5.34%, and the 30-year hit 5.7%, thanks to strong economic growth, stubborn inflation, booming AI infrastructure spending, bond-market volatility, and expectations of further Fed rate hikes.
This jump has investors on edge, with Earl Davis, head of fixed income at BMO Asset Management, saying the 30-year yield above 6% is "inevitable" and likely this month if things stay this unpredictable.
Fed may hike, auctions test demand
A few things are shaking up the market: The Federal Reserve might hike interest rates again later this year, and upcoming government debt auctions will test how much appetite there is for long-term bonds at these high rates.
Plus, recent economic data, especially rising costs in services, has added fuel to the fire, making everyone watch closely to see what happens next.