The 30-year US Treasury yield climbed to its highest point since 2002 in Monday's session, according to the Financial Times, as government debt prices kept falling. The move came alongside surging oil prices and persistent inflation worries that have made investors demand higher compensation to hold long-dated debt.
The selloff has been building for weeks. A separate commentary piece described bond investors as reluctant to "catch the falling knife," a phrase for buying an asset while it's still dropping, capturing the mood among traders watching yields climb without stepping in to buy.
Higher long-term yields raise borrowing costs across the economy, from mortgages to corporate debt, and they pressure stock valuations by making bonds a more competitive alternative to equities. It remains unresolved whether this is a temporary spike tied to oil prices or the start of a longer repricing of inflation expectations.