U.S. Treasury yields jump, pressuring global equities

U.S. Treasury yields spiked on Friday, curbing appetite for equities as investors worried the prolonged Middle East standoff could add to inflation pressures. The 10-year Treasury yield rose to 4.595%, its highest level since February 2025 and the biggest one-day gain in more than a year. The 30-year yield climbed to 5.127%, posting its highest close since July 2007. U.S. stocks sold off broadly, with all three major indices ending sharply lower. Chipmakers in the U.S. and overseas—after a strong month-long rally—were among the worst performers. The move in rates came as oil prices extended gains, reviving inflation concerns. Trump previously said the U.S. does not need the Strait of Hormuz to remain open, even as energy inventories decline. Risk assets weakened across Asia as well. South Korea's KOSPI sank more than 6%, while Japan's Nikkei 225 also dropped steeply. Japan's 10-year government bond yield closed at its highest level since 1997 after a sharp rise in April producer prices. (Jinshi)