Long Yields Climb as Oil Stays High

Long-term Treasury yields finished Thursday at new cycle highs, even as oil edged lower overnight. Treasury’s official curve put the 10-year at 5.18% and the 30-year at 5.47%. Brent then eased 1.4% to about $105.11 as markets weighed reported U.S.-Iran talks against continuing attacks on Saudi energy infrastructure.

For the Fly High universe, higher long rates keep refinancing costs and mortgage-asset book values under pressure. BDCs can earn more on floating-rate assets, but only while borrowers can absorb higher interest expense. Elevated energy costs can also squeeze borrower and property cash flow. These are transmission risks, not proof of weaker dividends; earnings remain the primary signal, with funding, leverage, and asset quality as supporting evidence.

Watch whether the overnight oil relief holds and whether long yields stabilize.

Sources

• U.S. Department of the Treasury: Daily Treasury Par Yield Curve Rates
• Reuters: Oil slides as U.S.-Iran truce hopes outweigh Houthi attacks on Saudi Arabia

This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.