Bond yields surge to fresh two-decade highs, but oil prices are buffeted by Iran headlines

Key U.S. Treasury yields surged to fresh two-decade highs Thursday as the price of oil jumped to as high as $108 per barrel.

The yield on the 30-year U.S. Treasury bond soared as high as 5.47%, a level not seen in 22 years.

After having posted its biggest one-day rise since April 2025, the yield on the 10-year U.S. Treasury bond continued advancing Thursday. In early trading, it climbed as high as 5.18%. That remains its highest since 2007.

Because of the influence the 10-year yield has over consumer borrowing rates, the average 30-year fixed mortgage rate jumped to 7.37% on Thursday, its highest since May 2024.

Meanwhile, oil prices jumped again overnight after a mediated U.S. dialogue with Iran at the United Nations General Assembly produced no tangible evidence of any progress toward ending the seven-month war.

Much of the day’s gains in oil were reversed shortly after midday ET after Reuters reported that U.S. and Iranian negotiators are exploring a phased path out of the war. The path reportedly involves Tehran’s reopening the Strait of Hormuz, according to Reuters’ multiple unnamed sources.

NBC News has not confirmed the Reuters report.

The reversal was short-lived, however, and international Brent…

Original source: https://www.nbcnews.com/business