US 10-year Treasury yield exceeds 5% for the first time since 2007
The rise of the US 10-year Treasury yield to 5.04% has caused concern in global markets and was evaluated by experts as a danger for risk assets.
Under the influence of heavy selling pressure in the bond market, the US 10-year Treasury yield rose to 5.04%, reaching its highest level since July 2007.
Record increase in the bond market
The US 10-year Treasury yield rose to 5.04% under the influence of sharp market sell-offs, recording its highest level seen since July 2007.
Geopolitical tensions and energy supply
While oil prices increased due to tensions in the Middle East, concerns that inflation could remain persistent also grew.
Saudi Arabia's East-West Pipeline, with a daily capacity of 7 million barrels used as an alternative to the Strait of Hormuz, was shut down due to attacks launched from Iraq.
Monetary policy and market expectations
While these developments regarding energy supply heightened global concerns, expectations that the Fed will further tighten monetary policy strengthened.
Experts' market assessments
Futures and commodity markets expert Zafer Ergezen stated that the US 10-year Treasury yield exceeding the 5% threshold poses a risk for all markets and economies.
KCM Trade Global Chief Market Analyst Tim Waterer noted that a bond yield above the 5% level carries a clear danger sign for risky assets.