U.S. Treasury yields surge to 2007 highs amid strong data and oil price surge

U.S. Treasury yields hit their highest levels since 2007 on September 23, 2026, with the 10-year yield briefly reaching 5.14%. The surge followed stronger-than-expected economic data, rising oil prices, and increased bets on Federal Reserve rate hikes. The 10-year yield jumped nearly 14 basis points, its largest one-day increase since April 2025. S&P Global reported a flash composite PMI of 58.4 in September, indicating annualized economic growth of about 5%. Traders increased expectations for another Fed rate hike in October 2026. Brent crude oil rose above $103 per barrel amid geopolitical tensions involving Iran, raising inflation concerns. The 30-year yield reached about 5.42% on the same day, with U.S. government borrowing costs remaining near multi-year highs.