U.S. Treasurys spiked on Friday morning following a week of messy inflation data and as traders looked to price interest rate policy under new Federal Reserve ChairKevin Warsh.
The yield on the30-year bondjumped 8.6 basis points to yield just under 5.1%, the highest since May 22, 2025, and nearing the highest since October 2023.
The yield on the10-year Treasurynote — the main benchmark for U.S. borrowing — surged 7 basis points to 4.55%.
Meanwhile, the2-year Treasury noteyield, which tends to react in line with short-term Fed rate decisions, was more than 6 basis points higher at 4.06%.
One basis point equals 0.01%, and yields and prices move inversely to each another.
The jump in yields comes as Warsh, who was confirmed by the Senate on Wednesday, grapples with an increasingly complicated inflation picture. PresidentDonald Trumpcontinues to push for interest rate cuts, even as data on consumer prices and imports shows prices ticking higher.
Reports this week showed theconsumer price index inflation rate at 3.8%, its highest since May 2023. Similarly, producer prices, which measure wholesale costs and signal pipeline inflation pressures, came inat a 6% annual rate, the highest since late-2022.
Also, thecost of importsrose by 1.9% for the month of April, and 4.2% on a 12-month basis, data published by the Bureau of Labor Statistics showed Thursday, as the conflict in the Middle East drives up energy prices, prompting importers to hike their costs. The annual import price increase was the most since October 2022, while an 8.8% surge on export costs marked the peak since September of that year.
On top of the rough data,energy prices jumped againafter President Donald Trump left China with little to show from a meeting between the U.S. leader and his Chinese counterpart, Xi Jinping.
West Texas intermediate crude, the U.S. benchmark, rose to $104.39, up $3.22 a barrel, while Brent crude, the global yardstick, hit $108.30, up $2.58 a barrel.
Source: Drudge Report
