10-year Treasury yield jumps to 3-year highs amid oil-led inflation fears
The 10-year Treasury yield rose six basis points to 4.85% Wednesday, highest since October 2023. The 2-year rose to 4.43% and the 30-year to 5.30%, while IEF is down 5% YTD.
85% on Wednesday, the highest since October 2023, as Brent crude above $100 renewed inflation fears ahead of next week’s Fed meeting. The move held even after the Treasury Department tripled Thursday’s buyback to $6 billion of off-the-run notes and bonds. 30%. So far this year, the iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF) has fallen 5%.
Traders are pricing about a 60% chance of a 25-basis-point hike at the Federal Open Market Committee meeting on Sept. 16.