U.S. Treasury Yields Rise Amid Oil Price Surges

U.S. Treasury yields rose for a second consecutive session on Thursday, driven by inflation concerns following shipping attacks in the Gulf and the Strait of Hormuz. These attacks pushed Brent crude futures up 4.7% to US$104.87 a barrel and U.S. crude futures up 4.6% to US$92.30.

Christopher Waller, a Governor of the Federal Reserve, contributed to the upward pressure by stating that additional rate hikes would likely be necessary to reach the 2-per-cent inflation target. Consequently, the benchmark 10-year yield reached 5.305%, and 2-year yields rose 5.7 basis points to 4.821%.

Investors monitored a US$22-billion auction of 30-year bonds to assess demand for long-term debt. Market participants observed that the yield movement remained more orderly than in previous sessions, supported by foreign demand stemming from volatility in European sovereign debt markets.