Treasury yields surge as 30-year rate tops 5.1% on inflation, Middle East risks

U.S. Treasury yields jumped on May 15, 2026, with the 30-year yield rising to 5.121%, its highest level since May 22, 2025, as global bonds sold off on renewed inflation concerns tied to higher oil prices and Middle East tensions. The 10-year Treasury yield climbed 14 basis points to 4.599%, taking its weekly increase to about 24 basis points, while the 2-year yield rose nearly 9 basis points to 4.079%. Long-dated bonds also weakened overseas, with the U.K. 30-year gilt yield reaching its highest level since 1998 and Japan’s 30-year yield hitting a record high. Hotter-than-expected U.S. April CPI and PPI data fueled expectations that the Federal Reserve may need to reconsider rate hikes. Kalshi data showed traders pricing a 60% chance of another Fed hike by July 2027. Jones Trading’s Michael O’Rourke said global bond weakness pushed institutional investors toward a more cautious equity stance, with the S&P 500 falling nearly 1% on May 15.