U.S. Treasury yields approach 5% as inflation fears mount ahead of key CPI report

The 10-year U.S. Treasury yield touched levels near 5%, the highest since 2023, as traders bet on a potential Federal Reserve rate hike following oil-driven inflation pressures. The 10-year auction achieved its highest yield since 2007, signaling market skepticism toward stable rates.

Treasury Secretary Bessent's $6 billion buyback operation failed to ease the bond sell-off, with investors demanding higher yields amid stagflation concerns. Friday's consumer inflation reading will be pivotal for Fed policy expectations heading into its next meeting.

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