OMM Redaksiyası
The yield on the benchmark US 10-year Treasury note rose to its highest level since May 2002 on Wednesday, as persistent inflation concerns continued to weigh on government bonds.
The yield reached 5.306% during intraday trading, narrowly exceeding its previous intraday peak recorded in 2002.
Energy prices and inflation concerns
Treasury yields, which move inversely to bond prices, have risen with few interruptions since March, when the outbreak of the Iran war drove energy prices higher, according to the source.
Although oil prices have recently declined, investors remain concerned that elevated energy costs could feed into broader inflation and prompt the Federal Reserve to continue raising interest rates.
Stronger economic activity and concerns about heavy government debt burdens have also increased pressure on the bond market.
Impact on borrowing costs
The increase in long-term yields came despite softer-than-expected US inflation data released on Wednesday. The data prompted traders to reduce their expectations of another Federal Reserve rate increase next month.
The 10-year Treasury yield is a key benchmark for borrowing costs across the US economy. Higher yields can raise financing costs for households and businesses while putting pressure on investment valuations.
