U.S. bond yields spiked Thursday, with the 10-year Treasury yield retreating to 5.233% after hitting a 24-year high near 5.34%. European bond yields in France, Italy, and Greece also rose in a chaotic session. Stocks recovered from earlier losses, with the Nasdaq composite ending up less than 0.1% and the S&P 500 advancing 0.2%.
Federal Reserve Vice Chair Philip Jefferson said officials may need more time before deciding on further interest rate hikes. Manufacturing activity came in slightly lower than expected, but the report signaled a jump in producer prices. Oil prices rose 2.7% to $92.87 a barrel on renewed Iran fears, following reports that the U.S. is deploying a third aircraft carrier to the Middle East.
Mortgage rates saw their largest increase in four years, with 30-year fixed-rate mortgages jumping to 7.28% from 7.03%, according to Freddie Mac. This rise reflects inflation, a surge in government debt, and heavy corporate borrowing for AI build-out, which are pushing bond yields up. The bond-market selloff is raising borrowing costs for home buyers and hurting the housing market.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing