US Treasury yields rose sharply across all maturities today , a development that puts further pressure on stocks and precious metals. The two-year yield climbed 9.1 basis points to 4.868% , while the five-year yield rose 10 basis points to 4.942% , and the 10-year yield surpassed the 5% mark to reach 5.052%, an increase of 8.5 basis points. Longer-term yields also remained elevated, at 5.41% for the 20-year note and 5.36% for the 30-year note .
This surge comes in conjunction with the strength of the dollar and the continued high levels of oil prices , which reinforces concerns about inflation and the continuation of a tight monetary policy, and puts additional pressure on the valuations of stocks, gold and silver.
How did rising yields put pressure on the markets?
The rise in US Treasury yields has put direct pressure on most asset classes . When the 10-year Treasury yield surpasses 5% , it increases borrowing costs and makes bonds more attractive than equities, particularly high-value technology and growth stocks. Simultaneously, the combination of rising yields and a strong dollar has increased pressure on gold and silver , as higher returns on interest-bearing safe-haven assets reduce the appeal of non-yielding metals. With oil remaining above $100 , three pressure factors— high yields, a strong dollar, and high energy costs —have brought inflation and interest rate concerns back to the forefront.
