economy
Treasury yields climb as bonds sell off and fear grows that Fed rate cuts are off the table
U.S. Treasury yields jumped on Friday as investors anticipated inflationary pressures resulting from the Middle East war.
TL;DR
- Treasury yields jumped on Friday, with the 10-year yield reaching 4.39%.
- Investors fear the Federal Reserve may not cut interest rates this year due to the Middle East war potentially increasing inflation.
- Iran and Israel exchanged strikes, leading to concerns about higher global oil prices.
- Market expectations have shifted, with traders pricing in a higher chance of a rate hike in June.
- The Federal Open Market Committee recently voted to keep interest rates unchanged.
- Central banks in Europe also held rates steady amidst concerns about the war's impact on inflation.