US Treasury Yields Ease as Inflation Concerns and Fed Rate Hike Hopes Persist
· Business · CNBC, Gadgets360
US Treasury yields eased early Tuesday after reaching multiyear highs during the previous session amid ongoing concerns over inflationary pressures. The 10-year Treasury note yield remained flat at 5.238%, while the 30-year bond yield dropped 1 basis point to 5.551%. The 2-year note yield rose 1 basis point to 4.9389% as traders priced in a more than 72% chance of a Federal Reserve rate hike at its October meeting. The borrowing costs have spiked as the US and Iran hold mediation talks regarding the Middle East conflict, which continues to weigh on global energy prices. Markets are awaiting upcoming economic data releases, including the JOLTS report, core PCE index, and monthly nonfarm payrolls.
Why it matters
Fluctuating US Treasury yields directly impact global borrowing costs, mortgage rates, and investor expectations for Federal Reserve monetary policy.
Read the original report — CNBC
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