PiCK
US 10-Year Treasury Yield Tops 5% Ahead of Fed Decision, Oil Surge Lifts It to Highest Since 2023
Summary
- A sharp rise in oil prices and the approaching Federal Reserve rate decision pushed US Treasury yields higher across the curve.
- The 10-year US Treasury yield climbed above 5%, its highest level since October 2023, affecting market borrowing rates including mortgages.
- The policy-sensitive two-year yield and the 30-year Treasury yield, which is shaped by geopolitical risks and long-term inflation expectations, also continued to rise.
Forecast Trend Report by Period
US Treasury yields rose across the curve as oil prices surged ahead of the Federal Reserve's rate decision.
The Kobeissi Letter said on September 14 that the yield on the 10-year US Treasury note had climbed above 5%, its highest level since October 2023. The 10-year yield is a key market benchmark that influences mortgage rates, auto loans and credit-card borrowing costs.
The policy-sensitive two-year yield also rose more than 2 basis points, with one basis point equal to 0.01 percentage point, to 4.666%. It had already climbed last week to its highest level since July 2024.
Longer-dated yields extended their gains as well. The 30-year Treasury yield, which is influenced by geopolitical risks and long-term inflation expectations, rose 2 basis points to 5.374%.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.