Markets React to Higher U.S. Treasury Yields and China Concerns

Longer-dated U.S. Treasury yields reached a 10-month high on Thursday as Wall Street experienced increasing losses, leaving investors concerned about the potential for sustained high interest rates and the struggling Chinese economy. The benchmark 10-year yields hit 4.312% in trading and tested October’s 4.338% before decreasing to 4.29%. The 30-year yield also reached 12-year highs. This surge in yields was driven by stronger-than-expected economic data and the Federal Reserve’s focus on containing inflation. As a result, stocks and other markets were affected negatively.