U.S. 10-Year Treasury Yield Hits 5.17% as Hawkish Fed Fuels Global Bond Selloff
Updated
Updated · CNBC · Sep 25
U.S. 10-Year Treasury Yield Hits 5.17% as Hawkish Fed Fuels Global Bond Selloff
2 articles · Updated · CNBC · Sep 25
Summary
The benchmark 10-year Treasury yield edged up to 5.17% on Friday after touching its highest level since June 2007 a day earlier, while the 30-year held at 5.463% and the 2-year at 4.899%.
Michael Barr's signal that further policy tightening may be needed, alongside a stronger-than-expected PMI reading and stubbornly high oil prices, intensified selling pressure in Treasuries.
Traders were pricing in a nearly 71% chance of an October rate hike, with Friday's University of Michigan sentiment and durable goods data next in focus.
Global bond markets added to the pressure this week as Japanese, U.K., German and broader eurozone yields hit fresh highs, even though eurozone and Japanese yields eased slightly on Friday.
ING said rate-hike fears may already be largely priced in, but debt-supply dynamics could keep government bond yields under pressure, especially around the 10-year sector.