By Lewis Krauskopf
NEW YORK, May 17 (Reuters) – Yields on benchmark 10-year U.S. Treasuries rose on Thursday to their highest level in about seven years, extending this week’s bond market selloff and pushing the U.S. dollar to a four-month peak against the yen.
Oil prices topped $80 a barrel for the first time since November 2014 before pulling back.
Wall Street’s main stock indexes slipped, wobbling amid trade jitters as the United States and China hold talks. European stock markets climbed and Britain’s FTSE 100 notched a record closing high.
The rising U.S. Treasury yields have been a driver across financial markets this week and come as data shows a strong U.S. economy that could indicate firming inflation
The benchmark 10-year U.S. Treasury note yield rose above 3.1 percent, continuing a surge from earlier in the week.
“I think it´s the same thing we have had really for the past couple of weeks: The inflation trade is being put on,” said Walter Todd, chief investment officer at Greenwood Capital in Greenwood, South Carolina.
The rise in bond rates, the dollar and oil “is being driven by the same backdrop, which is the U.S. economy is hitting on all cylinders,” Todd added.
On Wall Street, the Dow Jones Industrial Average fell 54.95 points, or 0.22 percent, to 24,713.98, the S&P 500 lost 2.33 points, or 0.09 percent, to 2,720.13, and the Nasdaq Composite dropped 15.82 points, or 0.21 percent, to 7,382.47.
The major indexes for the month of May so far are all up more than 2 percent.
The rise in yields “has added a little bit of volatility in markets, no question. But I don´t think it