U.S. bond yields have surged recently, and the 10-year yield is expected to hit the 5% mark
Bond investors now agree on one thing: The overall upward trend in yields is clear. The yield on the 10-year U.S. Treasury note topped 4.7% on Thursday, hitting its highest level since January 2025, as intensifying conflicts in the Middle East raised inflation concerns. Houthi armed forces attacked oil tankers on the Saudi Red Sea coast, and the United States threatened to increase air strikes. Brent crude oil futures surged in response, exceeding the $100 per barrel mark. The market generally believes that the current rise in U.S. bond yields will not stop here. For most of this year, U.S. bond yields have generally remained high, driven by market concerns about rising U.S. fiscal deficits—a significant expansion in fiscal spending by governments in the U.S. and many countries around the world. War in the Middle East is heating up again, adding to concerns about inflation. In addition, the field of artificial intelligence has ushered in a historic investment boom, and market demand for credit continues to rise, which has also contributed to higher yields. Peter Boockvar, chief investment officer of Single Point BFG Wealth Partners, said: "After the bond market experienced a 40-year bull market, it entered a bear market from 2020 to 2021. In the long term, overall interest rates and long-term interest rates will maintain an upward trend."