Yields on long-term U.S. Treasury bonds jumped to their highest levels since 2007.
Amid renewed concerns about persistent inflation and a delay in interest rate cuts in the United States.
The yield on 30-year U.S. Treasury bonds rose to 5.35% during Thursday’s trading.
This marks its highest level since the global financial crisis.
Similarly, the yield on 10-year Treasury bonds surpassed 4.9%, approaching the psychological threshold of 5%.
The rise in bond yields followed the release of U.S. Producer Price Index data for August.
The index rose 5.4% year-over-year, compared with 4.7% in July, exceeding analysts’ expectations of 5.3%.
It also rose 0.4% on a monthly basis.
Conversely, oil prices added to inflationary pressures, as West Texas Intermediate (WTI) crude futures rose 4.3% to $100.13 per barrel.
Meanwhile, Brent crude surpassed the $105 mark.
Consequently, investors fear that the energy crisis and rising production costs will push the Federal Reserve to maintain its tight monetary policy for longer.
This reduces the likelihood of an interest rate cut in the near future and increases pressure on global markets.
