US 10-year yield hits a 19-year high as Fed Governor Barr backs hikes
Fed Governor Barr made the case for more rate increases, saying the risks to getting inflation back to 2% have grown while the risks to jobs have eased.
US 10-year yield reaches a 19-year high amid Federal Reserve Governor's support for further interest rate hikes, as risks to bringing inflation down to 2% increase and job risks lessen. Fed Governor Barr backed more rate increases after S&P Global's early monthly gauge of US business activity, the Purchasing Managers Index (PMI), came in higher than expected.
Brent Crude Oil prices also rose above $100 a barrel after five days of declines, following Iranian President's UN speech dismissing negotiations under pressure. Futures contracts for the Fed's upcoming move now indicate a 73% probability of a rate increase on October 28. The 10-year yield is currently trading just under 5.10%, at the upper end of its session range and above its mid-September peak.
Its recent four-day streak at just under 5% ended following the Fed's rate hike on September 16, suggesting that speeches and surveys have now had a greater impact.
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Also reported by 1 other outlet
- Fed Governor Michael Barr signals more rate hikes needed to tame inflation economictimes.indiatimes.com
