US 10-Year Treasury Yield Tops 5%, Highest Since 2007
Summary
- The US 10-year Treasury yield rose above 5%, reaching its highest level since 2007.
- Rising global oil prices, inflation concerns and increased Treasury issuance are pushing bond prices lower and driving yields higher.
- If the 10-year yield stays above 5%, higher bond yields could affect money flows into risk assets such as stocks.
Forecast Trend Report by Period
The yield on the benchmark 10-year US Treasury note climbed above 5%, surging to its highest level since 2007. Rising oil prices, inflation concerns and increased Treasury issuance are weighing on the bond market.
Walter Bloomberg, an overseas financial news account, reported on Sept. 15 that the 10-year Treasury yield had broken above 5%, reaching its highest level in about 20 years.
Recent gains in oil prices have added to inflation pressure, while heavy Treasury issuance has driven bond prices lower and pushed yields higher, Walter Bloomberg reported. Markets are also increasingly betting that the Federal Reserve will raise its benchmark interest rate on Sept. 16.
If the 10-year yield continues to hold above 5%, relatively high bond returns could affect fund flows into risk assets such as stocks. Some market strategists say yields could climb further, with 6% also being discussed.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.