US 10-year bond yield reaches highest level since 2007 — NBC News

In the United States, the yield on 10-year government bonds rose to 5.08% — the highest level since June 2007. The yield on 30-year bonds reached 5.38% — a level not seen since before the global financial crisis nearly two decades ago, NBC News reports.

Oil prices rose

At the same time, oil became more expensive: the price of European Brent exceeded $101 per barrel, while US oil rose to nearly $92 per barrel. Higher energy prices may increase inflationary pressure, which, according to the outlet, is often accompanied by rising bond yields.

On the eve of this, US President Donald Trump said that American officials had contacted Iranian representatives during the UN General Assembly. This temporarily lowered oil prices and supported market expectations of a possible end to the war with Iran, which, according to NBC News, has been continuing for a seventh month.

More current news is available on the UA.News Telegram channel Telegram.

However, US special envoy Steve Witkoff later said on social media that the talks had been lengthy but required further work, and that mediators would continue their efforts. On Wednesday, the British maritime trade monitoring service also reported that a cargo vessel in the Strait of Hormuz had been struck by an unidentified projectile. The strait is an important energy supply route, and its shipping, according to the report, has been almost paralyzed for months because of the war.

Markets reacted with declines

Trump also expressed support for a ban on diesel fuel exports from the United States. The American Petroleum Institute said that removing US diesel from the international market could reduce oil refining, harm the global economy, and raise prices in the United States. Energy Secretary Chris Wright, as reported by Reuters, said that a diesel export ban would not help lower prices.

Following Trump's statements, European diesel futures rose by as much as 7%. The Nasdaq Composite lost 1% in mid-session, the S&P 500 fell 0.6%, and the Dow Jones declined by 270 points. Travel and major technology companies were among the biggest losers, while the average rate on a 30-year fixed-rate mortgage stood at 7.17%, according to Mortgage News Daily.