- The US five-year Treasury yield breached 5% for the first time since 2007, and yields across most maturities reached the highest levels in almost two decades.
- The selloff accelerated after US manufacturing and services activity data came in stronger than forecast and a five-year Treasury auction drew surprisingly dim demand.
- Rising oil prices sparked the initial decline by fanning worries around elevated inflation, and the move also punished European government debt.
Quotes
“The losses in the US Treasuries market intensified on Wednesday as robust economic data and a weak debt auction drove yields across most maturities to the highest levels in almost two decades.”
“Rising oil prices sparked the declines earlier in the session, fanning worries around elevated inflation and punishing European government debt as well.”