U.S. 10-Year Treasury Yield Hits 5% as Oil Surge Raises Fed Rate Fears

The U.S.

Treasury yield hit a new multi-decade high as a spike in oil prices raised fresh fears about inflation‌ in the run-up to the Federal Reserve’s September meeting, according to Tradeweb data cited by the Wall Street Journal.  The 10-year yield climbed as high as 5.012% during‌ Monday’s session, its highest intraday level since 2007, before retreating back below the 5% threshold.

However, Treasury data were lower than the wide 10-year par yield of the daily yield curve of the Treasury Department, 4.97% on September 14, 4.96% on September 11, and 4.79% at the start of September.

Bond prices later recovered after the morning selloff, with Tradeweb data showing the yield near 4.96% at the close of trading. Longer maturities also came under pressure. The Treasury’s September 14 data showed a yield of 5.37% on its 20-year bond and 5.34% on its 30-year.