The 10-year benchmark, which has a broad impact on borrowing costs across the economy, rose as high as 5.14%, an intraday level last seen in July 2007. The yield on the 30-year bond also surged above 5% for the first time since August of that year. The moves extended a broad bonds selloff that has pushed yields to multiyear highs, as strong economic data and a heavy slate of new government debt issuance have weighed on prices.

The selloff has been exacerbated by expectations that the Federal Reserve will keep interest rates higher for longer to combat inflation. The rise in yields has pushed up borrowing costs for consumers and businesses, with mortgage rates recently topping 8% for the first time since 2000. The yield on the 2-year note, which is more sensitive to Fed rate expectations, also rose, hitting 5.22%.