AI Image
10-year Treasury yield hits highest level since 2007 as market prices in another Fed rate hike
Yahoo Finance • • business
Key Points:
- The 10-year Treasury yield reached 5.07%, its highest since 2007, while the 30-year yield hit 5.37%, coinciding with a decline in the stock market.
- Rising oil prices and stronger-than-expected business activity data have increased concerns about additional Federal Reserve rate hikes.
- Federal Reserve Governor Michael Barr indicated that further interest rate increases are necessary to combat persistent inflation.
- Investor expectations for a Fed rate hike in October rose to 70%, driven by rising crude oil prices and supply concerns following President Trump's support for a US diesel export ban.
- Higher long-term bond yields reflect increased borrowing costs for households and companies, influenced by inflation, increased corporate borrowing for AI development, and ongoing Fed rate hikes.
