30-Year U.S. Bond Yield Back Above 5% as PPI Data Fails to Ease Inflation Anxiety

Although the U.S. PPI rose less than expected in December, inflation anxiety still gripped the market, with 30-year U.S. bond yields hitting new recent highs above 5% on Tuesday. 30-year yields broke above 5% for the second time since last Friday, while 10-year yields rose to 4.81%, both the highest levels since November 2023, according to a report from the U.S. Department of Commerce. U.S. bond yields have continued to move higher in recent weeks on market concerns that stubborn inflation could prompt the Federal Reserve to stop cutting interest rates, with short-bond yields recovering ground lost after the PPI release to be essentially unchanged from the day before.