US Treasury yield hits 19-year high as traders bet Fed will raise rates again
US 10-year Treasury yields jumped to 5.104%, a 19-year high, as markets expect more rate increases from the Federal Reserve.
The US 10-year Treasury yield surged more than 13 basis points to 5.104% on Wednesday, marking its biggest daily move in nearly 18 months and reaching levels last seen in July 2007. The 2-year Treasury, which signals expected Federal Reserve policy, jumped more than 11 basis points to 4.889%, suggesting traders believe the Fed will raise rates again in October.
Business activity indexes hit four and five-year highs, and Fed officials signalled more rate increases may be needed to bring inflation down to target. The moves reflect a shift in market expectations as investors recalibrate growth and inflation forecasts.
- 5.104 percent
- 10-year yield
- July 2007
- Last seen
- 13 basis points
- One-day jump
- 58.7, 5-year high
- Services PMI September
Why it mattersHigher US Treasury yields typically push global bond markets higher, affecting investment returns and borrowing costs worldwide.
AustraliaAustralian mortgage rates often track US Treasury movements, so higher American yields could translate to higher borrowing costs for Australian households and business.
✓ Claims checked against the source and corrected before publish. checked 10 h ago
