The Global Bond Sell-Off Continues. The U.S.’s Benchmark Note Hit Its Highest Level in Decades.

U.S. Treasury yields keep climbing on Thursday as the global bond sell-off continues, with the 10-year note reaching 5.3338% and topping a level last seen in April 2002. The note then pared gains but remained above 5.3% at 9:17 a.m. ET.

The yield on the 30-year Treasury bond also climbed and reached the highest level since July 2002.

The magnitude and speed of the sell-off is putting pressure on different sectors of the economy. In this context, Minneapolis Federal Reserve President Neel Kashkari said inflation concerns remain even though the latest figure for the central bank's preferred gauge was much cooler than expected.

Speaking at a Council on Foreign Relations event in New York, Kashkari said that "there are many different measures of inflation, but it's running at around a 3% rate."

"It's been elevated now for more than five years. I didn't think the inflation data today really changed that story for me very much." He went on to note that other data also released on Wednesday, including an updated GDP report and private payrolls, showed that the U.S. economy remains "resilient."

Bond yields are having a close correlation with oil prices, which are climbing on Thursday over reports that Chinese refiners banned fuel exports in October.

Brent crude, the international benchmark, reversed losses and gained almost 2% at 9:23 a.m. ET, almost touching a barrel again. West Texas Intermediate, the U.S. benchmark, climbed 0.36% and stood at $90.75 at the same time.

The report in question, published by Reuters, noted that Beijing made the decision to preserve domestic stocks. The country had already made such a decision in March after the war between the U.S. and Iran began.

Prospects of free flows through the Strait of Hormuz appear dim at the moment. Another report detailed that Secretary of State Marco Rubio ordered the Iranian delegation to the UN to leave the U.S. after failing to make progress in negotiations to achieve a ceasefire deal and reopen the waterway.

"Secretary Rubio kicked out the Iranian delegation who had overstayed their welcome. The UN General Assembly was over, so it was time for them to go," a U.S. official told Axios.

The outlet went on to note that there seemed to be progress on Monday morning, but by the afternoon that notion had evaporated. Hours later, Rubio ordered the Iranian delegation to leave the country, something that happened in the early hours of Tuesday. Another source told the outlet that the delegation was scheduled to leave anyway.

Iranian media reported on Wednesday that Araghchi presented the U.S.'s counterproposal for a seven day ceasefire to President Masoud Pezeshkian. While Tehran has not announced its response, the United Kingdom Maritime Trade Operations Centre (UKMTO) noted that three tankers were hit in the key waterway around that time.