10-year Treasury yield rises to highest since 2007 as Fed rate-hike expectations rise
The benchmark 10-year Treasury yield climbed to its highest level since 2007 on Tuesday as a sell-off in U.S. government debt deepened ahead of the Federal Reserve's interest-rate decision.
The 10-year Treasury yield has risen to its highest level since 2007. According to Investing.com, it reached an intraday high of 5.030%. This increase is driven by expectations that the Federal Reserve will hike interest rates, with bets on a hike fueled by signs of sticky inflation and concerns over the US fiscal health.
The rise in yields comes as investors seek higher returns in debt over equities, with US stock futures turning sharply lower following the spike in yields. According to Investing.com, S&P 500 Futures fell 0.3%. The 5% level was seen as a major psychological threshold for the 10-year benchmark.
The increase in yields is also attributed to a rally in oil prices, which has fueled inflation concerns, as reported by Bloomberg. The Federal Reserve's interest-rate decision is expected to be announced soon, with many expecting a hike of at least 25 basis points.
Brief written by urgent.news from CNBC World, Investing.com, Bloomberg — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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