The decline in US Treasury bonds intensified on Wednesday, with strong economic data and weak tender results driving most types of yields to their highest level in nearly two decades. First, the rise in oil prices triggered a fall in US debt at the beginning of the session, which heightened market concerns about high inflation, and European government bonds were also sold off. Meanwhile, the latest data shows that both manufacturing and service activity in the US were stronger than expected, driving the bond market to fall at an accelerated pace. Demand from the 5-year US bond tender was unexpectedly sluggish, further exacerbating the decline in the bond market. The tender results pushed the yield on US 5-year Treasury bonds above 5% for the first time since 2007. Currently, there are only 2-year and 3-year interest-paying US bonds that have yet to reach this mark. The 10-year yield recorded the biggest increase since “Liberation Day” in April 2025; the comprehensive tariffs introduced by Trump on the same day caused market turmoil.

The decline in US Treasury bonds intensified on Wednesday, with strong economic data and weak tender results driving most types of yields to their highest level in nearly two decades. First, the rise in oil prices triggered a fall in US debt at the beginning of the session, which heightened market concerns about high inflation, and European government bonds were also sold off. Meanwhile, the latest data shows that both manufacturing and service activity in the US were stronger than expected, driving the bond market to fall at an accelerated pace. Demand from the 5-year US bond tender was unexpectedly sluggish, further exacerbating the decline in the bond market. The tender results pushed the yield on US 5-year Treasury bonds above 5% for the first time since 2007. Currently, there are only 2-year and 3-year interest-paying US bonds that have yet to reach this mark. The 10-year yield recorded the biggest increase since “Liberation Day” in April 2025; the comprehensive tariffs introduced by Trump on the same day caused market turmoil.