Spiking oil prices jolt U.S. bond yields past 5%, threatening to set off a vicious cycle of debt just as the Fed is expected to hike rates

(Credit: David Paul Morris/Bloomberg via Getty Images)

The benchmark 10-year Treasury yield briefly topped 5% for the first time since 2023 as spiking oil prices threaten to spill over to debt markets.

Yields later pulled back, but Monday’s milestone capped off a surge of more than 100 basis points since just before the Iran war began in late February, when the 10-year rate was below 4%.