US Treasury Yields Enter Danger Zone Amid Inflation Fears
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
Source: CNBC
- Yield Surge: The 30-year US Treasury yield surged above 5.19% on Tuesday, marking the highest level since 2007, while the 10-year yield approached 4.69%, indicating market concerns over persistent inflation and hawkish rate expectations that could pressure equities and risk assets.
- Market Resilience: Despite the intensified selloff in government bonds, HSBC noted that robust corporate earnings growth and a relatively optimistic view on the Middle East conflict have kept markets resilient, although further increases in yields could lead to temporary declines in risk assets.
- Psychological Impact: The auction of the 30-year Treasury clearing above 5% is seen as a significant psychological threshold; according to Interactive Brokers' chief strategist, current market conditions are a
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About HSBC
HSBC Holdings plc (HSBC) is a banking and financial services company. Its business segments include Hong Kong, UK, Corporate and Institutional Banking (CIB), and International Wealth and Premier Banking (IWPB). Its Hong Kong business comprises retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. Its UK business comprises UK retail banking and wealth (including first direct and M&S Bank) and UK commercial banking, including HSBC Innovation Bank. The CIB segment is formed from the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business. The IWPB segment comprises premier banking outside of Hong Kong and the UK, its global private bank, and its asset management, insurance and investment distribution businesses. Its customers worldwide through a network covering 58 countries and territories. Its customers range from individual savers and investors to companies, governments and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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