US Treasury yields climbed to multi-year highs on Thursday as a renewed surge in oil prices pushed investors to reassess how quickly the Federal Reserve may need to tighten monetary policy, according to a Bloomberg report.
The selloff in government bonds came as benchmark oil prices jumped more than 5% to their highest level since May, reviving concerns that higher energy costs could feed through into broader inflation. That prospect has made investors less confident that the Fed can afford to ease policy, with traders raising the probability of a rate increase as soon as next week to about 70%.
