The yield on the 10-year U.S. Treasury rose to 5.02%, reaching its highest level since 2007.

The yield on the US 10-year Treasury bond has risen to its highest level in nearly twenty years, marking the latest milestone in a global bond sell-off driven by soaring energy prices, debt concerns, and inflation worries. On Tuesday, the yield on this maturity climbed 3 basis points to 5.02%, surpassing its 2023 peak and reaching the highest level since 2007. The latest movement followed a rise in global oil prices fueled by heightened Middle East supply risks. Since the US launched an attack on Iran at the end of February and disrupted Middle Eastern oil and gas supplies, global bond yields have continued to climb. Other factors are also at play, such as companies borrowing heavily to fund artificial intelligence expenditures, which injects a large amount of debt into the market and provides additional stimulus to the already resilient US economy.