The U.S. 10-year Treasury yield hit a new high since 2007.

Driven by surging energy prices, expanding debt levels and inflation, global bonds have suffered a large-scale selloff, with the US 10-year Treasury yield climbing to its highest level in nearly two decades. On Tuesday, the yield rose 3 basis points to 5.02%, surpassing its 2023 high and marking the highest level since 2007. This round of yield increases stems from rising international oil prices driven by heightened Middle East supply risks. Since the US took military action against Iran in late February, global bond yields have continued to rise amid disruptions to Middle East oil and gas supplies. In addition, heavy corporate borrowing to invest in artificial intelligence has also been a major driver: a flood of debt has poured into the market, while related spending has injected stimulus into an already resilient US economy.