Rising U.S. bond yields are once again emerging as a major risk for equities, with several segments of the stock market increasingly vulnerable as investors reassess the impact of higher borrowing costs and inflation concerns, according to a Reuters report.
The renewed surge in Treasury yields comes amid a global bond selloff driven by elevated energy prices linked to the ongoing Middle East conflict. The benchmark 10-year U.S. Treasury yield climbed to its highest level since February 2025 before easing slightly, intensifying fears that interest rates could remain elevated for longer.