Global equity markets are reckoning with a massive liquidity squeeze as high borrowing costs collide with unprecedented infrastructure capital demands.

Global equity markets experienced volatility driven by surging bond yields, though a surge in artificial-intelligence stocks helped Wall Street finish higher.

The benchmark US 10-year Treasury yield climbed to 5.05%, reaching its highest level since July 2007 as oil prices rose and markets priced in rate hikes.

Treasury Secretary Scott Bessent's aggressive short-term debt interventions to lower borrowing costs have sparked intense backlash from Wall Street as the 30-year yield climbs above 5.3%.

Despite doubling its monthly bond buybacks to $4 billion, the U.S. Treasury failed to curb long-term yields as 30-year rates returned to 5.28%.

US stocks rebounded on Wednesday following a Treasury Department intervention designed to relieve severe pressure on the bond market.

US 30-year Treasury yields climbed to 5.29% amid mounting national debt concerns, heavy bond supplies, and surging corporate borrowing to fund the artificial intelligence boom.

The pound fluctuated against the dollar following the surprise appointment of John Healey as finance minister under Prime Minister Andy Burnham. Investors are now focused on how the new leadership will balance fiscal goals with competing demands for defense and welfare spending.