Yields surge to May 2025 highs as oil prices and inflation data rattle markets

Longer-dated Treasury yields climbed to their highest levels since May 2025 ​on Friday, as a spike in oil prices ​stoked fears that ongoing energy disruptions in the Middle ⁠East could further fuel inflation — which data this week ​showed had already surged in April.

Oil prices gained 3% after ​U.S. President Donald Trump said his patience with Iran is running out, adding to concerns over the lack of progress on a peace ​deal to end ship attacks and seizures around the Strait ​of Hormuz.
Investors have already been rattled by strong inflation prints this week ‌showing ⁠energy disruptions are being seen in some inflation-based measures. U.S. consumer inflation saw the largest annual gain in three years last month, while U.S. producer prices posted their biggest ​increase in four years.

The ​2-year note ⁠yield, which typically moves in step with interest rate expectations for the Federal Reserve, was ​up 7 basis points at 4.062%. It reached ​4.071%, ⁠the highest since March 2025.

The yield on benchmark U.S. 10-year notes rose 9.3 basis points to 4.552%. It got to 4.558%, ⁠the ​highest since May 2025.

The 30-year bond ​yield rose 8.6 basis points to 5.0992%. It reached 5.103%, also the highest ​since May 2025.

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