10-year U.S. Treasury bond yields rose to their highest level since 2007 amid inflation and rising oil prices

Yields on 10-year U.S. Treasury bonds rose to 5.0266% on Tuesday, their highest level since 2007, amid rising energy prices and fears that the Federal Reserve will tighten monetary policy. 10-year U.S. Treasury securities are a benchmark for global bond markets.

The rise in yields comes ahead of the Fed’s monetary policy meeting, where investors expect another interest rate hike. Economists polled by Reuters anticipate at least one more increase by the end of March next year, after recent data indicated persistent inflation.

Price pressures have been amplified by developments in the oil market. The price of a barrel of Brent crude rose 1.6% on Tuesday to $107.35, following a new wave of attacks launched by Houthi rebels from Yemen against Saudi Arabia.