Treasury Selloff Deepens As Inflation Fears And Middle East War Continue Pressuring Markets

Analysts have increasingly tied the recent jump in Treasury yields to rising energy prices and inflation fears linked to the war involving Iran and broader instability across the Middle East. (Credit: AFP)

Long-term U.S. Treasury yields surged to their highest levels since 2007, deepening concerns across financial markets as investors weighed persistent inflation pressures, elevated oil prices and the economic impact of the ongoing Middle East conflict.

The benchmark 30-year Treasury yield climbed above 5.19%, while the 10-year Treasury yield approached 4.69%, extending a weeks-long selloff in government bonds. The move pushed borrowing costs higher and added pressure on Wall Street, where major indexes closed lower for a third straight session.