10-Year Treasury Yield Hits 5.35% Before $39 Billion Auction
Updated
Updated · CNBC · Oct 7
10-Year Treasury Yield Hits 5.35% Before $39 Billion Auction
3 articles · Updated · CNBC · Oct 7
Summary
The benchmark 10-year Treasury yield rose nearly 8 basis points to 5.35% on Wednesday, its highest since 2002, as investors positioned for a closely watched $39 billion note sale.
That auction will test whether current yields are high enough to attract buyers or whether investors demand a bigger premium amid worries over inflation, U.S. debt levels and term risk.
Longer-dated bonds stayed under pressure: the 30-year yield climbed 8.3 basis points to 5.724%, a 24-year high, while the 2-year yield rose 2.7 basis points to 4.818%.
The move extends a broader selloff, with the 10-year up 60 basis points since end-July as U.S. crude has jumped 20%; French and U.K. 10-year yields also surged Wednesday.
Markets later Wednesday will parse FOMC minutes and New York Fed inflation-expectations data for clues on whether the Fed's September rate hike will be followed by further tightening.