Treasury Yields Rise to Multi-Decade Highs Amid Rate Hike Expectations
U.S. Treasury yields continued their upward trend early Thursday, with the benchmark 10-year yield reaching a 19-year high of 5.124%. This followed stronger-than-expected U.S. economic data and hawkish comments from Federal Reserve officials that increased expectations for further rate hikes. The S&P Global purchasing managers' index showed significant growth in both services and manufacturing sectors, reinforcing the narrative of a resilient economy. Traders now price in a 70% chance of another Fed rate hike at its October meeting. Deutsche Bank analysts attributed the Treasury selloff to strong PMI data and rising oil prices. Global government bond markets also experienced selling pressure as Japan's JGB yield hit levels not seen since 1996, while U.K. Gilts and German Bunds rose in tandem.
Topics: bond market selloff Federal Reserve rate hikes PMI data Treasury yields