U.S. Treasury yields surge, weighing on global stock markets

U.S. Treasury yields surged sharply on Friday, dampening investor interest in equities amid concerns that the ongoing stalemate in the Middle East could exacerbate inflation. The yield on the U.S. 10-year Treasury rose to 4.595%, the highest level since February 2025, marking its largest single-day increase in over a year. The 30-year Treasury yield climbed to 5.127%, reaching its highest closing level since July 2007. All three major U.S. stock indices closed significantly lower, with U.S. and global chip stocks—having rallied strongly over the past month—among the hardest-hit sectors. These market movements occurred as oil prices continued to rise, reigniting inflation fears. Previously, Trump stated that the U.S. does not need the Strait of Hormuz to remain open, even as energy inventories decline. Overseas markets also underperformed, particularly the South Korean KOSPI index, which plunged more than 6%. Japan’s Nikkei 225 also tumbled sharply, as the 10-year Japanese government bond yield closed at its highest level since 1997 following a sharp rise in April’s producer prices. (Jinshi)