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US 10-year yield nears 2007 highs on inflation and Fed expectations
The benchmark 10-year yield rose to 5.274% before easing to 5.247%, while traders priced in a 65.0% chance of a 25-basis-point Fed hike in October.
US Treasury yields climbed as energy prices stayed elevated and investors weighed shifting expectations for future Federal Reserve tightening, FXStreet reported. The move also came alongside volatile US-Iran headlines, including conflicting reporting on prospects for a peace agreement.
FXStreet said the US 10-year Treasury note yield rose to its highest level since June 2007 at 5.274%, before trimming gains to 5.247%, up more than eight basis points.
The outlet added that traders continued to demand a higher premium on US debt amid inflation running above the Fed’s 2% goal and Fed commentary. FXStreet also noted Governor Lisa Cook’s hawkish stance, and that markets still saw a 65.0% chance of a 25-basis-point rate hike at the October meeting.