US 10-year yield briefly tops 5% ahead of FOMC, hitting highest since 2007

The yield on the 10-year US Treasury note — a global benchmark for interest rates — surged past 5.04% during trading Tuesday (local time), reaching its highest level in 19 years.

According to electronic trading platform Tradeweb, the 10-year yield climbed to 5.041% at around 4 a.m. Eastern time Tuesday. That marks the highest level since July 2007, just before the global financial crisis took hold.

As of 9:54 a.m., the 10-year yield was hovering around 5%.

The yield had also briefly crossed 5% during trading on Tuesday before pulling back. Within a single day, however, it pushed to a new high, extending the bond market's unsettled run.

Ultra-long yields also rose. The 30-year Treasury yield was up about 5 basis points — one basis point equals 0.01 percentage point — from the previous session, trading at 5.377%.

The 30-year yield touched an intraday high of 5.401%, its highest since June 2007.

The 2-year Treasury yield, which is more sensitive to monetary policy, rose about 2 basis points from the previous session to 4.656%.

Rising Treasury yields reflect falling bond prices.

A surge in global oil prices has stoked inflation concerns, and with markets now treating a Federal Reserve rate hike as near-certain, selling pressure in the Treasury market has continued.

The Fed opened a two-day Federal Open Market Committee meeting Wednesday to decide on its benchmark interest rate.

According to the CME FedWatch tool, federal funds rate futures markets priced in a 92.7% probability that the Fed will raise its benchmark interest rate by 0.25 percentage point in September.