U.S. Treasury Yields Rise Amid Global Bond Selloff
U.S. Treasury yields edged higher on Friday, driven by hawkish Federal Reserve comments and stronger-than-expected economic data. The benchmark 10-year yield rose slightly to 5.17%, while the 30-year bond remained flat at 5.463%. A global bond selloff this week saw Japanese government bonds, U.K. gilts, German bunds, and other eurozone bonds hit fresh highs before yields edged lower on Friday. Investors are reacting to comments from Fed Governor Michael Barr suggesting further rate hikes may be necessary to bring inflation under control. High oil prices and a strong purchasing managers' index also contributed to the upward pressure on Treasury yields. Traders now price in nearly a 71% chance of an October rate hike, according to CME data. Looking ahead, market participants will closely watch Friday's University of Michigan consumer sentiment report and durable goods data for further clues about inflation trends.
Topics: economic data Federal Reserve policy Treasury yields