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Long-Term U.S. Yields Stay Elevated on Hot Inflation

Energy-driven price gains keep borrowing costs high across the economy.

Overview

  • Investors extended selling of long-dated Treasuries after April consumer prices rose 3.8% from a year earlier, keeping the 30-year yield near 5% and the 10-year near 4.45% to 4.50%.
  • CNBC reported a modest pullback as traders assessed the data, with the 10-year around 4.459% and the 30-year about 5.023%.
  • Oil’s surge has fed headline inflation, with Brent crude above $107 a barrel and U.S. gasoline averaging about $4.50 a gallon, according to FactSet and AAA.
  • The Treasury plans to sell $42 billion in 10-year notes and $25 billion in 30-year bonds this week, a wave of new supply that can lift yields.
  • Higher yields risk pushing mortgage rates back above 7% and underscore that the Federal Reserve has limited sway over longer maturities, as futures pricing points to uncertain policy odds into 2027.