10-year US Treasury yields surges over 5.05% to 19-year high

The benchmark 10-year US Treasury yield surged 7 basis points to 5.058%, its highest level since July 2007, while the 2-year yield climbed 8 basis points to 4.464% and the 30-year yield advanced above 5.347%. The selloff was triggered by stronger-than-expected US data, with the services PMI rising to 58.7 and manufacturing PMI climbing to 56.7, pushing the implied probability of a 25 basis point Fed rate hike in October to 64% from 55% just a day earlier. Rising US yields above the closely watched 5% threshold typically pressure emerging market equities like India through FII outflows and currency depreciation, and weigh disproportionately on growth and technology stock valuations.