#US10YTreasuryYieldHits19YearHigh
Yields on Treasury bonds continue to rise, reaching multi-year highs.
The yield on the 10-year U.S. Treasury note extended its gains for a third consecutive session, reaching 5.14%, its highest level since July 2007, and the 30-year yield rose above 5.44%, its highest level since 2004.
Borrowing costs have increased due to the rise in oil prices amid growing tensions between the United States and Iran, while the parallel talks at the U.N. General Assembly have made little progress toward ending the conflict.
Rising energy prices are likely to put greater pressure on inflation, especially since diesel prices in the United States reached a new record. Against this backdrop, traders have increased their bets on further monetary tightening by the Federal Reserve this year.
Markets now estimate a nearly 75% probability of another 25-basis-point interest rate hike in October and more than a 58% probability of a similar move in December. Recent remarks by several Federal Reserve officials have also been interpreted as restrictive.
$TUT
$BROCCOLI714
$Broccoli
Yields on Treasury bonds continue to rise, reaching multi-year highs.
The yield on the 10-year U.S. Treasury note extended its gains for a third consecutive session, reaching 5.14%, its highest level since July 2007, and the 30-year yield rose above 5.44%, its highest level since 2004.
Borrowing costs have increased due to the rise in oil prices amid growing tensions between the United States and Iran, while the parallel talks at the U.N. General Assembly have made little progress toward ending the conflict.
Rising energy prices are likely to put greater pressure on inflation, especially since diesel prices in the United States reached a new record. Against this backdrop, traders have increased their bets on further monetary tightening by the Federal Reserve this year.
Markets now estimate a nearly 75% probability of another 25-basis-point interest rate hike in October and more than a 58% probability of a similar move in December. Recent remarks by several Federal Reserve officials have also been interpreted as restrictive.
$TUT
$BROCCOLI714
$Broccoli
