The yield on 10-year US government bonds rose on Tuesday to its highest level in almost 20 years, as surging energy prices fuelled fresh inflation fears.
The benchmark US 10-year Treasury yield, a global reference point for bond markets, climbed to 5.02%, its highest level since 2007.
Bond yields have been rising for some time, not only in the United States but also across Europe, as investors worry that higher energy costs could push up prices more broadly. Those concerns have been intensified by conflicts in the Middle East and Ukraine, which have added pressure to energy markets.
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The price of Brent crude, the international oil benchmark, rose above $107 a barrel on Tuesday after the temporary closure of a major pipeline linking eastern Saudi Arabia with the west.
European 10-year borrowing costs also moved higher on Tuesday. France’s 10-year yield rose above 4.5% on Tuesday morning, while Belgium’s reached 4.19%, its highest level since the start of 2012.
