Key U.S.Treasury yields surged to fresh two-decade highs Thursday, as the price of oil returned to $105 per barrel.The yield on the 30-year U.S.
Treasury bond soared as high as 5.446%, a level not seen in 22 years.After posting its biggest one-day rise since April 2025, the yield on the 10-year U.S.Treasury bond continued advancing on Thursday.
In early trading it climbed as high as 5.15%.That remains its highest level since 2007.Meanwhile, oil prices jumped again overnight, after a mediated U.S.
dialogue with Iran at the United Nations General Assembly produced no tangible evidence of any progress towards ending the 7-month war.Those rising oil prices have continued to push commercial diesel fuel prices to all-time records.
On Thursday, the national average price for diesel was $4.51, effectively unchanged from a day earlier, but up 73% since the Iran war began.Likewise, the national average price of regular unleaded gas was 50% higher Thursday than it when the U.S.and Israel attacked Iran in late February, at $4.48 per gallon.Stocks fell in early trading, putting them on track for a third straight day of losses.
The S&P 500 was down by 0.5%, while the Nasdaq Composite declined 0.7%.The Dow tumbled almost 300 points.
A global sell-offAround the world, the bond sell off is roiling sovereign debt markets.“The acceleration higher in US rates yesterday is being felt globally as to highlight for the umpteenth time that we’re all in this global bond boat together,” wrote Peter Boockvar, chief investment officer at OnePoint BFG Wealth.The yield on Japan’s 10-year bond rose to its highest level since 1996 on Thursday, while Germany’s 10-year bund notched its highest yield since 2009.“As summer officially ends, macro data are still fairly solid in the US, as indicated by a 4%-type unemployment rate and 2%-ish growth,” wrote Bank of America’s global rates analysts.“But the risks continue to pile up for anxious markets,” they added, pointing to ...