Long-term Treasury yields reached their highest level since 2004 on Tuesday, driven by a widening bond selloff and rising oil prices. The 10-year yield climbed to 4.25%, while the 30-year yield surged to 4.38%, reflecting investor concerns over persistent inflation and robust economic data. The Wall Street Journal reported that the selloff intensified as crude oil futures rose above $85 per barrel, adding pressure on fixed-income markets.

Analysts at Goldman Sachs and Morgan Stanley warned that yields could rise further if inflation remains sticky. The Federal Reserve is expected to maintain its hawkish stance, with officials signaling potential additional rate hikes. Meanwhile, the S&P 500 fell 1.2%, and the Dow Jones Industrial Average dropped 300 points, as higher yields made equities less attractive.

Traders are now pricing in a 60% probability of another rate increase in November. The bond market's volatility has also prompted BlackRock to adjust its portfolio strategy, shifting toward shorter-duration assets to mitigate risk. With global energy costs climbing and geopolitical tensions high, market participants are bracing for continued turbulence in both debt and equity markets.