US 10-Year Treasury Yield Steady After Sharp Rise
The yield on the US 10-year Treasury note traded little changed around 5.24% on Tuesday, pausing the previous session’s sharp rise, which saw the benchmark yield climb 8bps to its highest level since mid-2007, as traders continued to price in the prospect of further tightening by the Fed. Little progress has been made in US-Iran talks aimed at ending the conflict and fully reopening the Strait of Hormuz. The situation continues to put upward pressure on oil prices, raising concerns that inflation could accelerate. Meanwhile, strong economic activity in the US, along with concerns over large fiscal deficits and rising government debt, is also weighing on the bond market. A series of key economic data releases this week will provide further insight into the health of the US economy. Swaps traders are pricing in nearly a full percentage point of Fed rate hikes over the coming year. The benchmark 10-year yield is up nearly 46 basis points in September.
24% on Tuesday, pausing the previous session’s sharp rise, which saw the benchmark yield climb 8bps to its highest level since mid-2007, as traders continued to price in the prospect of further tightening by the Fed. Little progress has been made in US-Iran talks aimed at ending the conflict and fully reopening the Strait of Hormuz. The situation continues to put upward pressure on oil prices, raising concerns that inflation could accelerate. Meanwhile, strong economic activity in the US, along with concerns over large fiscal deficits and rising government debt, is also weighing on the bond market.
A series of key economic data releases this week will provide further insight into the health of the US economy. Swaps traders are pricing in nearly a full percentage point of Fed rate hikes over the coming year. The benchmark 10-year yield is up nearly 46 basis points in September.