US government bond yields touch fresh 24-year peaks amid heavy selling

UPDATE - follow-up to US bonds selloff resumes as 10-year, 30-yields hit new 24-year high: US Treasuries face heavy selling pressure as yields climb to their highest levels in 24 years. Continuous worries about inflation drive this market movement. Higher oil prices add to fears that high inflation will stay in the market for longer. At the same time, companies are borrowing more money. This corporate borrowing competes for investor cash and creates supply issues in the market.

Market Action

The Treasury now plans to hold an auction for 39 billion dollars worth of 10-year notes.

Context

Bond yields rise when bond prices fall, which typically happens when investors demand higher returns due to economic risks. Higher yields on government debt can push up borrowing costs across the wider economy for businesses and consumers alike.