Overview
- U.S. Treasury yields jumped Friday to levels last seen in May 2025, with the 10-year near 4.56%, the 30-year around 5.10%, and the 2-year touching 4.07%.
- Oil prices rose about 3% after President Donald Trump said his patience with Iran is running out, renewing worries over attacks and seizures near the Strait of Hormuz.
- April data showed consumer prices rising at the fastest annual pace in three years and producer prices at a four-year high, reinforcing concerns that energy costs are feeding broader inflation.
- A global selloff followed, with U.K. 10-year gilt yields hitting multi-decade highs, Japanese 10-year yields reaching a record 2.7%, and euro-zone benchmarks climbing.
- Money markets now assign roughly a 60% chance of a Fed rate increase this year, and strategists note G7 10-year yields have risen by an average of 17 basis points this week.