From The Economic Times · Reuters · · 1m 20s
US Bonds Hit 24-Year Highs as Oil Prices Rise
US bond yields hit 24-year highs amid oil price jumps and SpaceX financing plans.
In brief
US bond yields hit 24-year highs amid oil price jumps and SpaceX financing plans. US 10-year and 30-year bond yields reached 24-year highs as oil prices rose above $100 and SpaceX sought $40 billion in financing. Originally reported by The Economic Times.
US Treasuries Under Selling Pressure
US Treasuries faced renewed selling pressure on Wednesday as oil prices rose above $100.
“US Treasuries came under renewed selling pressure on Wednesday, driving yields on the benchmark 10-year note and 30-year bond to fresh 24-year highs as a jump in oil prices above $100 reignited worries that inflation may prove more stubborn than expected”
Oil Prices Rise Due to Supply Concerns
Brent crude rose 1.1% to $101.69 per barrel as the market weighed supply constraints from a storm heading for US oil-producing regions and attacks by Yemen's Iran-backed Houthis on Saudi Arabia.
US Crude Prices Increase
US crude increased 1.34% to $90.64 a barrel.
10-Year Yield Hits 24-Year High
The benchmark 10-year yield climbed 4.4 basis points to 5.316% after hitting a 24-year peak of 5.364%.
30-Year Yield Touches 24-Year High
US 30-year yields also touched a 24-year high and were last 5.5 bps higher at 5.696%.
SpaceX Seeking $40 Billion Financing
SpaceX is seeking $40 billion in financing to fund purchases of Nvidia chips.
Yield Curve Steepens
The yield curve steepened on Wednesday with the spread between two-year and 10-year yields widening to 52.2 bps from 48.1 bps.
The big picture
US 10-year and 30-year bond yields reached 24-year highs as oil prices rose above $100 and SpaceX sought $40 billion in financing.
