10-year Treasury yield rises to highest since 2007 as Fed rate-hike expectations rise
Traders priced in a 93% chance of a quarter-point rate increase as oil-driven inflation worries pushed bond yields higher, Reuters reported.
- On Monday, the 10-year U.S. Treasury yield touched an intraday high of 5.012%, its highest level since 2007, triggering a sell-off that pushed the Nasdaq Composite down 0.56% ahead of the Federal Reserve's policy meeting.
- Surging crude prices, driven by the closure of a key Saudi Arabian pipeline, fueled inflation concerns that pressured bond markets, with Brent crude rising to over $109 a barrel amid supply volatility.
- CME FedWatch data indicates a 93% probability of a quarter-point rate increase at the Federal Reserve's Sept. 15-16 meeting, which would lift the federal funds range to 3.75%-4.00%.
- Pierre-Benoît Gauthier, vice-president of investment strategy at IG Wealth Management, noted the 5% yield threshold hits investor psychology harder than 4.90%, as rising borrowing costs pressure government finances and equity valuations.
- Analysts warn that persistent inflation may make current corporate earnings growth difficult to maintain amid broader fiscal concerns and uncertainty surrounding artificial intelligence development.
142 Articles
142 Articles
The cost of borrowing for the United States exceeded 5% for the first time in almost 20 years, the dollar strengthened — Reuters The yield on US 10-year bonds rose to 5.041% - the highest <p>since 2007. The dollar strengthened and Bitcoin fell 5%</p>.
Benchmark bond yield reaches highest level in nearly 20 years
The yield on the 10-year U.S. Treasury bond reached its highest point since before the 2008 financial crisis on Tuesday, portending increased borrowing costs for millions of Americans. The 10-year Treasury bond yield peaked at 5.041 percent Tuesday morning, the note’s highest intraday mark since July 2007. The note closed at above 5 percent for…
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Wall Street Slides as Oil Surge Pushes 10-Year Treasury Yield Above 5%
U.S. stocks fell for a second straight session Tuesday as crude oil surged, the benchmark Treasury yield crossed 5% and investors sharply increased bets that ... The post Wall Street Slides as Oil Surge Pushes 10-Year Treasury Yield Above 5% first appeared on [your]NEWS.
Interest on public debt has been on fire, especially in the longer maturities. The income from sovereign securities around the world is a cause for concern, particularly in the United States, where the 10-year Treasury title has reached the highest level since 2007.
10-year Treasury yield hits highest level since 2007, oil surges above $105 as Fed expected to hike interest rates
The US 10-year Treasury yield hit its highest level since 2007 on Tuesday, as oil prices jumped above $105 a barrel and stocks slumped on higher odds of an interest-rate hike this week.
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