Treasury yields hit highest since 2007 as markets fret Fed action

Treasury yields have risen in the lead-up to the Federal Reserve’s next interest rate decision this week, with the 10-year yield hitting its highest level in more than a decade.

Benchmark 10-year Treasury yields were sitting at 4.34% on Tuesday, the highest they have been since 2007. Meanwhile, the benchmark two-year Treasury yield was at 5.08%, the highest it has been since 2006, although it was briefly a bit higher in March.

The yields are also inverted, meaning that the shorter-term yields are higher than longer-term yields. Yield curve inversions can portend recessions and can show investors have little faith in growth picking up in the coming years.

The higher yields come a day before the Fed makes its next decision on interest rates. The consensus is that the central bank will hold its rate target steady on Wednesday at 5.25% to 5.50%, although recent inflation reports have made it likely that it will have to hold a restrictive stance for longer, which likely, in part, is factoring into the higher yields, according to Greg McBride, chief financial analyst at Bankrate.
US Department of Treasury Building by Robert Linder is licensed under Unsplash

Get latest news delivered daily!

We will send you breaking news right to your inbox

© 2024, Privacy Policy