10-year Treasury yield threatening to break out to 19-month high - CNBC

What the report says

CNBC reported that U.S. Treasury yields rose Thursday as a sharp move higher in oil prices revived inflation concerns and new labor-market data showed fewer people filing for unemployment benefits than expected. The 10-year Treasury yield, a widely watched benchmark tied to borrowing costs for mortgages, auto loans and credit cards, was recently around 4.699% after briefly moving above 4.7%, its highest level since Jan. 15, 2025, according to the report.

The move was broad across the Treasury market. CNBC said the 2-year yield, which is especially sensitive to expectations for Federal Reserve policy, climbed to about 4.353%, while the 30-year yield reached roughly 5.167%. Bond yields rise when prices fall, and the increase suggested investors were reassessing the outlook for inflation and interest rates.

Energy markets were a central driver. CNBC reported that Brent crude settled above $100 a barrel, while U.S. West Texas Intermediate also rose sharply, following reports of attacks on tankers near the Red Sea coast of Saudi Arabia and renewed U.S. threats involving Iran. Higher oil prices can feed inflation by raising fuel and transport costs, increasing pressure on the Federal Reserve.

On the economic front, weekly jobless claims for the period ended July 18 fell to 187,000, below the 212,000 forecast by economists surveyed by Dow Jones. CNBC also cited CME FedWatch data showing traders had lifted the implied probability of a September Fed rate increase to more than 80%, up from 52% a week earlier. Investors were also awaiting S&P Global’s flash U.S. purchasing managers’ index for manufacturing and services.