US Treasury yields hit 19-year record: the 10-year at 5.241% as Wall Street opens the week lower

The yield on the 10-year US Treasury note closed Monday at 5.241%, touching its highest level in 19 years, as Wall Street opened the week with falling stocks.

According to the Wall Street Journal, the 10-year yield rose from Friday’s 5.18%, reaching as high as 5.272% during Monday’s session — nearing its highest in 24 years. Rising yields reflect investor fears that inflation will stay elevated and that the Federal Reserve could tighten monetary policy further.

Pressure was also felt on long-term bonds: the 30-year yield rose 0.06 percentage points to 5.561%, its highest in 24 years, the prestigious American financial outlet adds.

Equity markets buckled under the pressure. The Dow Jones fell 0.7%, the S&P 500 0.8% and the Nasdaq 0.9%, starting the week in negative territory.

Not even the announcement of a record $150 billion stock buyback program by Nvidia was enough to lift the market: the chipmaker’s shares rose, but the enthusiasm failed to spread to other sectors.

Oil prices returned as a source of concern: Brent crude closed at $105.28 a barrel, up 0.9%, with volatility driven by conflicting headlines over the US–Iran negotiations. The fact that the front-month contract trades well above December’s shows supplies remain tight, the Wall Street Journal notes.