10-year US Treasury yields surges over 5.05% to 19-year high
The 10-year US Treasury yield climbed to 5.058%, its highest level since July 2007, as fresh services and manufacturing data raised concerns about further Federal Reserve rate hikes. Rising yields intensified pressure on equities, particularly growth and technology stocks.
The 10-year U.S. Treasury yield reached a 19-year high of 5.058% on Wednesday, surpassing its September peak of 5.026%. This surge has put pressure on equities, according to a CNBC report. The 2-year Treasury note yield increased by 8 basis points to 4.464%, while the 30-year Treasury yield rose by 4 basis points to 5.347%, reflecting broader market concerns.
European government bonds also saw a decline in value as investors focused on inflation, interest-rate expectations, higher oil prices, and government borrowing needs. The increase in yields is seen as a reflection of renewed pressure in global bond markets. The S&P Global services PMI rose to 58.7 in September, its highest reading in nearly five years, while the manufacturing PMI climbed to 56.7, marking its strongest level in over four years.
The CME Group’s FedWatch tool indicates a 64% chance of another 25-basis-point rate hike in October, up from 55% on Tuesday, indicating growing expectations of further interest rate increases.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
