10-year Treasury yield rises to highest since 2007 as Fed rate-hike expectations rise
The sell-off in U.S. government debt is deepening as investors increasingly price in an interest rate hike this week.
TL;DR
- The 10-year Treasury yield climbed to its highest level since 2007, reaching over 5.025%.
- The 30-year Treasury bond yield rose to 5.384%, and the 2-year Treasury note yield increased to 4.68%.
- Markets are pricing in a greater than 92% chance of a 25 basis point rate hike by the Federal Reserve.
- High inflation expectations, influenced by elevated oil prices, are closely linked to rising Treasury yields.
- The correlation between West Texas Intermediate crude and the 10-year Treasury yield has strengthened significantly.