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US 10-year yields rise above 5.20% as PMI surprises lift rates
The 10-year yield climbed from 4.95% on Monday to more than 5.20% by Thursday, and the rise was linked to stronger US and eurozone PMI prints rather than debt-sustainability concerns.
Global bond yields rose further over the week, with 10-year US government bond yields moving up from 4.95% on Monday to a weekly high above 5.20% on Thursday, according to Action Forex.
The outlet said yields also came under pressure in Europe and Japan, where they reached new cycle highs, but the move was attributed to more positive growth surprises and higher oil prices rather than renewed worries about debt sustainability.
Action Forex also pointed to expectations of additional central bank tightening that have been lifting yields more at the short end of the curve, pushing rates higher across the curve.
It cited the US PMI for September, which drove upside momentum as the composite index rose to its highest level in five years, alongside a eurozone PMI beat and stronger South Korean exports data for September.