Bond Yields Surge Again Following Treasury Intervention
· Business · NBC News, The Independent
Bond yields jumped Thursday, erasing the declines caused by the Treasury Department's unusual intervention in the debt market a day earlier. In early trading, the 10-year Treasury bond yield rose as high as 4.71%, while the 30-year yield spiked to 5.627%. As yields rose, stocks dropped at the opening bell, with the S&P 500 falling 0.3%, the Nasdaq Composite dropping 0.5%, and the Dow falling 400 points. Meanwhile, oil prices accelerated as U.S. crude oil touched $89 per barrel and Brent crude rose to almost $95 following threats from Donald Trump against Iran. The Treasury Department's announcement on Wednesday revealed that outstanding national debt topped $40 trillion for the first time, putting interest payments on track to surpass Medicare as the government's greatest expense. JPMorgan Chase's global rates team wrote in a note that the timing of the announcement was highly unusual and lacked credibility absent real fiscal consolidation.
Why it matters
Rising bond yields and spiking oil prices increase borrowing costs for consumers and inflate energy expenses across the broader economy.
Read the original report — NBC News
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