US 10-Year Yields Rise to Highest Since Early 2025 Amid Global Bond Selloff
The US benchmark yield climbed to its highest level since early 2025 as a global bond selloff continued, driven by concerns over inflation and an influx of corporate debt. On Tuesday, the 10-year Treasury note yield rose around two basis points to 4.75%, marking one of the largest moves in nearly 19 months. The trend was mirrored across sovereign debt markets globally, including Europe and Japan. The selloff has been exacerbated by a surge in corporate bond issuance, with August's total hitting an all-time high for the month at over $145 billion on Monday alone. Meanwhile, geopolitical tensions have worsened after US President Donald Trump rejected extending peace talks with Iran, contributing to market uncertainty and higher crude oil prices. Despite these developments, traders are tempering expectations of immediate rate hikes by the Federal Reserve following recent economic data suggesting a wait-and-see approach. The swaps market currently assigns about a 35% chance that the Fed will raise rates in September.
Tickers: $BMO
Topics: corporate debt supply global bond selloff inflation concerns US Treasury yields