From NBC News · Steve Kopack · · 1m
Treasury yields hit 20-year high as oil surges
U.S. Treasury yields spike to 5.13% as oil jumps above $103 per barrel, triggering stock drops
In brief
U.S. Treasury yields spike to 5.13% as oil jumps above $103 per barrel, triggering stock drops Rising oil prices and inflation data boosted bond yields, pushing mortgage rates to 7.26% and stocks lower Originally reported by NBC News.
Yields surge to 20-year high
U.S. 10-year Treasury yields hit 5.13%, the highest since 2007, pushing mortgage rates to 7.26%.
“US business activity growth accelerated for a fourth successive month in September to reach the fastest rate for over five years”
Oil prices rebound
Brent crude oil rose 3.8% to $103.08 per barrel, ending a five-day decline streak.
Inflation data sparks fears
S&P Global reported rising business input costs, with fuel and transport costs spiking due to higher oil prices.
“Firms input costs have jumped in September at the steepest rate for four years, with fuel and transport costs spiking higher thanks to the rise in oil prices”
Fed signals rate hikes
Federal Reserve governor Michael Barr warned of further rate hikes to combat inflation, citing increased risks.
“Risks to achieving our inflation target have increased, while risks to the labor market have receded”
Iran war disrupts oil
A cargo vessel was struck in the Strait of Hormuz, sparking oil price volatility after Trump's U.N. comments.
Diesel export ban
Trump proposed a diesel export ban, but energy officials warned it would raise U.S. gas prices and harm global markets.
“Removing U.S. diesel from the market could result in reduced refinery runs, global economic damage and even higher U.S. prices”
The one thing
Rising oil prices and inflation data boosted bond yields, pushing mortgage rates to 7.26% and stocks lower
