US Treasury yields soar after strong data fuels bets on further rate rises
Closely followed survey underscores worries parts of the world’s biggest economy are overheating
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.
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- 10-year US Treasury yields surges over 5.05% to 19-year high economictimes.indiatimes.com
