Bond Investors Flee as Inflation Worry Sends Yields to 2026 High

The Treasury Department building in Washington.

Photographer: Stefani Reynolds/Bloomberg

Investors are fleeing government bonds after back-to-back US inflation reports this week showed mounting price pressures, sending benchmark interest rates to the highest levels in nearly a year.

The yield on benchmark 10-year Treasuries rose to the highest since July and 30-year yields traded above 5% as the latest evidence of accelerating inflation pushed traders to almost fully price in a Federal Reserve interest-rate hike in the coming year.