US Treasury yields hit 24-year high

The yield on the benchmark 10-year US Treasury note reached 5.36% in October, marking its highest level in approximately 24 years.

Concerns that higher oil prices could lead to persistent inflation have strengthened expectations that the Federal Reserve (Fed) may maintain its restrictive monetary policy stance for longer. Rising bond yields are increasing borrowing costs for companies while also putting pressure on stock market valuations.

The 10-year Treasury yield closed at 5.24% on October 9, while the US bond market remained closed on October 12 due to a public holiday. Investors are now focused on US inflation data scheduled for release this week. Higher-than-expected inflation figures could renew upward pressure on Treasury yields.