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. This increase comes as a sell-off in US government debt deepens ahead of the Federal Reserve's interest-rate decision. According to Investing.com, the 10-year rate jumped 1.3% to an intraday high of 5.030%.
The surge in yields is driven by increasing confidence that the Federal Reserve will hike interest rates by at least 25 basis points. Recent signs of sticky inflation, with price pressures above the Fed's 2% annual target, have furthered bets on a hike. Concerns over deteriorating US fiscal health, including a growing deficit and rising debt levels, have also led traders to demand a higher yield premium.
The rise in yields has impacted the stock market, with S&P 500 Futures falling 0.3% following the spike in yields. Bloomberg reports that a rally in oil prices has fueled inflation concerns and strengthened bets on a Federal Reserve interest-rate hike.
Brief written by urgent.news from CNBC, CNBC World, Investing.com, Bloomberg — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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