Explainer: What rising bond yields mean for markets

NEW YORK: Yields on US Treasuries have surged to their highest level in more than a year from record lows hit in 2020, as Federal Reserve commitments to hold rates near zero for years to come encouraged investors to bet economic growth and inflation will heat up.

Though yields remain low by historical standards, a rapid rise can ripple through to affect assets ranging from equities and commodities to housing prices.

Here’s what’s happening: