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US 10-year yield hits 19-year high as Fed push for further hikes grows
The move follows above-forecast S&P Global flash PMI readings, with rate futures implying about a 73% chance of an increase on Oct. 28.
Federal Reserve Governor Michael Barr argued for additional rate increases, saying the risks to returning inflation to 2% have grown while the risks to jobs have eased, FXStreet reported. His comments came after S&P Global’s flash Purchasing Managers Index surveys for the earliest monthly read on US business activity.
The PMI measures of prices rose to the highest level since October 2022, supporting expectations that inflation pressures remain. The 10-year Treasury yield traded just under 5.10%, near the top of its session range and above mid-September highs just over 5%.
FXStreet noted that the 10-year yield had been staying just under 5% for several sessions after the Fed’s Sept. 16 hike, but the latest combination of Barr’s remarks and the PMI data has lifted yields. Rate futures now show an increase on Oct. 28 with about a 73% implied probability.
The article also tied broader market conditions to moves in oil and geopolitics, saying Brent crude rose back above $100 a barrel after a five-day decline. It cited Iranian President Pezeshkian’s UN remarks as ruling out negotiating under pressure, while showing how commodities can intersect with expectations for rates and the dollar.
Latest closeWTI crude $91.79 ▼3.0%|Brent $97.67 ▼1.6%