Treasury yields climb above 5% as Brent crude hits $108 and investors brace for a potential Federal Reserve rate hike, while a global bond selloff persists amid the unwinding of the yen carry trade.
10-year Treasury yield climbed past 5% for the first time since 2023, driven by inflation fears and rate hike expectations.
Brent crude climbed to $108 a barrel, stoking inflation fears and contributing to higher yields.
30-year Treasury yield hovered at 5.38% amid broad bond selloff.
Unwinding of yen carry trade as Japanese rates rise and yen strengthens, adding to global bond selloff.
The 10-year Treasury yield surged past 5% for the first time since October 2023, fueled by rising Brent crude prices and shifting rate hike expectations. Goldman Sachs now anticipates a Federal Reserve rate increase this week, as markets price in an 80% probability of action to combat persistent inflation and restore policy credibility.
Yields are climbing due to a combination of high inflation fears, rising oil prices, and market expectations that the Federal Reserve will implement a rate hike to stabilize the economy.