US Treasury bond yields top 5 percent

Yields on US Treasury bonds went above 5 percent on Thursday for the first time since August 2006 as investors sold off government paper amid worries about interest rates. Trade was extremely heavy, and by early afternoon in New York, the two-year bond had added 8 basis points to a yield of 5.02 percent, while ten-year paper had advanced 14 basis points to yield 5.12 percent and thirty-year issues were yielding 5.23 percent. The thirty-year bonds were very close to the yield target of 5.25 percent set by the Federal Reserve.

Elsewhere, afternoon trade found the ten-year Bund at a yield of 4.516 percent, a gain of 6.6 basis points, while in the UK the ten-year gilt had added 5.4 basis points to 5.317 percent. In Japan, the ten-year government bond there was up by as much as 5.5 basis points to 1.890 percent but it later retreated to end the session at 1.860 percent.

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