US Bond Yields Hit 30-Year High

The yield on the 30-year U.S. Treasury bond stood at around 5.20%, after touching a level of 5.2273% during New York trading, the highest since June 2007, as market bets grew on the persistence of inflationary pressures and the possibility of interest rate hikes in the coming months. Meanwhile, futures markets raised the probability of a rate increase at the September meeting to around 60%, pricing in additional tightening of approximately 33 basis points by year-end. He noted that the rise in bond yields since the previous meeting reflects market-led tightening of financial conditions. This coincided with ongoing tensions in the Middle East, where Brent crude remained near $90 per barrel after a jump of more than 7% in the previous session, fueling concerns about persistent global inflationary pressures, despite the continued movement of oil tankers in the region. Futures on the Nasdaq and S&P 500 indices also rose, supported by strong earnings from major technology companies, as investors continued to assess the outlook for artificial intelligence spending.