Bond Market: Sell-off in the bond market – ten-year US bond at 5.1 percent
Weak demand at the US Treasury bond auction and growing concerns about a tighter interest rate path for the Fed have driven yields to new yearly highs.
US Treasury yields surged to multi-year highs on Wednesday, with the 10-year benchmark bond reaching 5.13%, its highest level since the 2007 financial crisis. The 2-year and 5-year bonds also saw significant increases, with yields of 4.889% and nearly 5.0%, respectively. The sell-off was triggered by strong economic data, comments from Federal Reserve official Michael Barr suggesting further interest rate hikes may be necessary to combat inflation, and a weak auction of 5-year US Treasury bonds.
The increased yields make it more expensive for the US government to service its growing debt, which could exceed $1 trillion in annual interest payments this year.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
