US 30-Year Bond Yield Hits 5.38% as Oil Near $106 Fuels Fed Hike Fears
Updated
Updated · Financial Times · Sep 11
US 30-Year Bond Yield Hits 5.38% as Oil Near $106 Fuels Fed Hike Fears
3 articles · Updated · Financial Times · Sep 11
Summary
30-year Treasury yields climbed to 5.38% on Friday, the highest in nearly 20 years, while 10-year yields touched 4.97% as the US long-bond sell-off deepened.
Brent crude held just under $106 a barrel after Iran-backed Houthi forces seized Yemen’s port of Mocha and moved toward the Bab al-Mandeb chokepoint, raising fears of disrupted oil flows and stickier inflation.
Fed hike expectations strengthened with futures implying about a 70% chance of a rate increase, up from 60% early Thursday, while investors awaited August US inflation data later Friday.
The rout spread globally: Japan’s 10-year yield rose to 2.98%, Asian equities fell sharply, and disappointment over Treasury Secretary Scott Bessent’s buyback effort that missed its $6 billion goal added to market anxiety.
Investors said the surge has also weakened Treasuries’ haven appeal, with reduced Fed forward guidance and higher energy prices making long-dated bonds look more like a source of portfolio risk than protection.