US Treasury Yields Surge to 2024 Highs; 10-Year at 4.35%, 5-Year at 4.367%

Treasury yields have experienced a significant uptick in recent days, reaching new highs for the year amid persistent inflation concerns. The US 10-year Treasury yields surged by 24 basis points last week, hitting 4.326%, the highest since February 23, and briefly reaching 4.35%. Similarly, the 5-year Treasury yield reached 4.367%, marking its highest level since November 28, with a notable increase of 31 basis points. This rise in yields, observed over six consecutive days, has prompted traders to adjust their expectations for US monetary policy, pushing back the timeline for anticipated easing. The increase in yields is raising alarms about the potential impact on the stock market, with strategists warning that it could disrupt the ongoing rally. Additionally, the rise in US 2-year yields to its highest level in 2024 indicates a shift in market expectations, with fewer Federal Reserve interest-rate cuts predicted for this year, as forecasted by economists at Goldman Sachs.