U.S. Treasury yields reached multiyear highs on Thursday as oil prices exceeded $100 per barrel.
U.S. Treasury yields reached multiyear highs on Thursday as oil prices exceeded $100 per barrel. The 10-year U.S. Treasury note yield rose more than 11 basis points to 4.954%, reaching its highest level since October 2023.
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The 2-year Treasury note yield rose more than 13 basis points to 4.56%, while the 30-year Treasury bond yield rose more than 8 basis points to 5.368%. These increases occurred as traders processed the impact of U.S. oil prices crossing the $100 per barrel mark, driven by fears of a prolonged conflict between the U.S. and Iran. The rise in yields overshadowed a wholesale inflation report showing a 0.4% price increase in August. Core prices, excluding food and energy, rose 0.2% in the month, which was slightly lower than the forecasted 0.3% increase. The Treasury Department conducted a bond buyback program where it repurchased nearly $5.2 billion in off-the-run 10- and 20-year notes. This amount was approximately half of the $10.5 billion offered. The buyback was concentrated among a few holders, indicating a target on providing liquidity in specific market areas. Yields remained higher despite a strong 30-year auction that showed better-than-expected demand.