U.S. Treasury yields surged, with the 10-year yield reaching its highest level since 2007 and the 30-year yield hitting a new high since 2004; Japan's 10-year yield also reached a 30-year high.
On Thursday, the US 10-year government bond yield rose to its highest level since 2007, and the 30-year government bond yield also reached its highest since 2004. In Asian trading hours, the Japanese 10-year government bond yield hit a 30-year high. This was primarily driven by the slow progress of the conflict in the Middle East, strong US economic data, and market expectations of a Federal Reserve rate hike in October (with an approximate 70% probability). Consequently, oil prices rose, and most stock markets fell, with the S&P 500 closing down 0.02%, the Dow Jones Industrial Average down 0.3%, and the Nasdaq Composite Index up a modest 0.01%. Elevated yields also pushed the 30-year US fixed-rate mortgage interest rate above 7%, putting pressure on homebuyers.
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