10-year Treasury note yield hits highest level since 2002 as traders brace for key bond sale
Traders are bracing for a closely watched auction as inflation worries and Fed rate expectations keep pressure on long-term borrowing costs.
- On Wednesday, the benchmark 10-year Treasury yield climbed to about 5.35%, its highest level since 2002, as investors sold government bonds ahead of a $39 billion note auction and Federal Reserve meeting minutes.
- Persistent inflation fears and massive deficit spending drove the bond sell-off, with heavy debt issuance by tech giants funding AI-linked infrastructure projects adding pressure to borrowing costs across developed economies.
- BMO's Head of U.S. Rates Strategy Ian Lyngen said Wednesday's $39 billion supply is 'far more relevant for setting the tone in US rates,' signaling investors demand significant premiums to absorb new debt.
- Rising yields pressured equity valuations as major indices tumbled, with investors weighing higher corporate borrowing costs and reduced present value of future earnings affecting REITs and technology stocks.
- Strategists polled by Reuters expect the benchmark yield to ease to 5.00% by year-end, though traders pricing in a 78% chance of unchanged Federal Reserve rates suggest conviction behind lower-yield forecasts remains wavering.
21 Articles
21 Articles
US bond selloff resumes as 10- and 30-year yields hit fresh 24-year highs
US Treasuries are facing significant selling pressure as yields hit new highs, fueled by ongoing inflation concerns. Higher oil prices have exacerbated worries about sustained inflation in the market. The 10-year and 30-year bond yields have soared to their highest levels in 24 years. Additionally, rising corporate borrowing is vying for investor capital, contributing to supply constraints. Amid these dynamics, the Treasury plans to auction $39 …
(New York = Yonhap News) Correspondent Kim Yeon-sook = On the 7th (local time), selling pressure emerged again in the U.S. Treasury market, pushing major bond yields to their highest level in about 24 years during intraday trading...
10-year Treasury Yield Hits 24-year High, Raising Pressure On Stocks
NEW YORK (VINnews) — The yield on the benchmark U.S. 10-year Treasury note climbed to about 5.35% on Wednesday, its highest level since 2002, as investors sold government bonds ahead of the release of minutes from the Federal Reserve’s latest meeting. The move is important for Wall Street because Treasury yields influence borrowing costs across […]
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