Long-term Treasury yields reached their peak levels since May 2025 on Friday as energy prices spiked, raising concerns that continuing Middle East disruptions could drive inflation higher after data revealed April’s sharp increases.
Energy prices jumped 3% following comments from U.S. President Donald Trump indicating his patience with Iran is wearing thin, heightening worries about stalled negotiations to resolve ship attacks and seizures near the Strait of Hormuz.
Market participants were already shaken by this week’s robust inflation reports demonstrating that energy supply disruptions are appearing in certain inflation metrics. Consumer price increases hit their largest yearly rise in three years during the previous month, while producer price growth recorded its steepest climb in four years.
The 2-year Treasury note yield, which generally tracks Federal Reserve interest rate projections, increased 7 basis points to 4.062%. The yield touched 4.071%, marking the highest level since March 2025.
The benchmark 10-year Treasury note yield climbed 9.3 basis points to 4.552%, reaching 4.558% at its peak – the highest point since May 2025.
The 30-year Treasury bond yield advanced 8.6 basis points to 5.0992%, hitting 5.103% – also the highest since May 2025.
