The yield on 30-year U.S. Treasury bonds hovers near 5%, indicating unresolved pressure in the bond market.

After breaking above the critical 5% level for the first time since last July, the yield on 30-year U.S. Treasury bonds hovered around 5% again early this week—indicating that pressure on the world’s largest bond market has not eased. This is a significant threshold, and traders are closely watching for signs it may rise further. At the heart of this sell-off is market concern that a potential closure of the Strait of Hormuz could fuel inflation and reduce the scope for interest-rate cuts. Additionally, massive corporate spending in the AI sector has raised concerns about a possible acceleration in near-term price increases. (Jin10)