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30-year Treasury yield rises to 5.27% as bond investors push higher rates
The 30-year yield climbed 6 basis points on Friday to 5.27%, its highest level since 2007, even as the Fed left its overnight rate target unchanged.
Yahoo Finance reports that the 30-year Treasury yield rose another 6 basis points on Friday to 5.27%, the highest level since 2007, despite the Fed leaving its policy stance unchanged earlier in the week.
The outlet said Fed Chairman Kevin Warsh left interest rates unchanged on Wednesday at a target range for the overnight rate of 3.5% to 3.75%, while longer-term yields have continued to move higher, with the 30-year up about 34 basis points since his first meeting in June.
According to Yahoo Finance, the 10-year yield has gained about 24 basis points and the 2-year is up about 10 basis points, with the biggest increases on the longer end of the curve where Treasury yields help influence mortgages and other borrowing costs.
Yahoo Finance added that Warsh has emphasized reducing forward guidance and allowing “unfiltered” pricing from market participants, and highlighted a view from Macro Compass founder Alfonso Peccatiello that bond investors could keep applying pressure until borrowing costs, the cost of betting against bonds, or weaker data changes investor expectations.