Bonds: Yield on 30-year US bonds as high as it was last in 2002 - "room for further interest rate hikes"
The yield level is shifting further and further upwards for US government bonds. However, the analysts at a major US bank say that this does not have to be the end of the line at the current level.
US bond yields have reached levels not seen in nearly a quarter century, with the 30-year Treasury yield hitting 5.62% on Tuesday, the highest since 2002. The 10-year Treasury yield is at its highest level since 2007 and serves as a benchmark for mortgages, auto loans, and credit card rates. The US Federal Reserve has raised its benchmark interest rate to 3.75-4.00%, and markets expect potentially two more rate hikes by year-end.
Rising energy prices, growing US debt, and corporate bond issuances are also driving up yields, which could impact consumer financing costs and become a key issue in the November midterm elections.
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.
