Treasury yields surged to 16-year highs on Wednesday, pressuring equities as markets price in a 70% probability of an October Fed rate hike amid rising energy costs and robust manufacturing activity.
10-year Treasury yield hit 5.07%, highest since 2007, as market prices in another Fed rate hike.
30-year Treasury yield touched 5.37% as stock market declined.
Brent crude rose to around $100 per barrel on supply concerns and strong demand data.
Stock market declined as Treasury yields surged and Fed rate hike bets increased.
The 10-year Treasury yield climbed to 5.07%, marking its highest level since 2007, as investors brace for further Federal Reserve interest rate hikes. Stronger-than-expected manufacturing data and rising Brent crude prices, which neared $100 per barrel, fueled market concerns over persistent inflation and increased borrowing costs.
Yields are climbing due to hotter-than-expected economic data, rising oil prices, and increased market expectations that the Federal Reserve will implement further interest rate hikes to combat sticky inflation.