Yields elevated as inflation fears keep markets on edge

Inflation concerns have kept US Treasury yields elevated as markets remained on edge. The 30-year yield hit a more-than-20-year peak, while longer-dated yields retreated from earlier highs. However, they remained elevated due to investors' worry over renewed inflation and potential further central bank rate hikes. Oil prices climbed about 2 percent on Thursday as US-Iran diplomatic talks showed little progress, and uncertainty over a possible US ban on diesel exports affected investors.

Global bond investors grew wary after a sharp selloff on Wednesday, pushing 10-year yields to their largest daily increase since April 2025. Stronger-than-expected US business activity data drove prices paid to a nearly four-year high this month, raising concerns that higher bond yields could hurt the equity rally by making borrowing more expensive and drawing investors out of stocks into bonds. Despite this, financial conditions still appear supportive of a resilient economy and stock market.