What happened: The 10-year Treasury yield (^TNX) climbed as high as 5.04%, its highest level since 2007, on Tuesday. Meanwhile, the 30-year Treasury (^TYX) yield touched 5.39%.
What's behind the move: The move higher in yields comes ahead of the Federal Reserve's rate decision this week. Investors have priced in a 25 basis point rate hike following the Fed's FOMC meeting on Wednesday, with a 92% likelihood.
Bond yields remain high as oil prices (BZ=F, CL=F) have firmly moved above $100 per barrel, with no timeline for the reopening of the Strait of Hormuz, a critical oil passageway.
Higher energy costs have raised concerns that inflation will remain above the Fed's 2% target.
"At the same time, investors are insisting on being compensated for high levels of government debt and the ever-rising deficit," TradeNation senior market ***** yst David Morrison said.
#move #yields
What's behind the move: The move higher in yields comes ahead of the Federal Reserve's rate decision this week. Investors have priced in a 25 basis point rate hike following the Fed's FOMC meeting on Wednesday, with a 92% likelihood.
Bond yields remain high as oil prices (BZ=F, CL=F) have firmly moved above $100 per barrel, with no timeline for the reopening of the Strait of Hormuz, a critical oil passageway.
Higher energy costs have raised concerns that inflation will remain above the Fed's 2% target.
"At the same time, investors are insisting on being compensated for high levels of government debt and the ever-rising deficit," TradeNation senior market ***** yst David Morrison said.
#move #yields
1 day ago
