US 10-Year Treasury Yield Hits 5.012% as Oil Prices Jump
The US 10-year Treasury yield reached its highest intraday level since 2007 on Monday, climbing to 5.012% before falling back below 5%. This surge in yields comes as oil prices jumped, reviving inflation concerns ahead of the Federal Reserve's September 16 rate decision.
According to Tradeweb data cited by The Wall Street Journal, the benchmark yield peaked at 5.012%, but later closed near 4.96% after bond prices recovered from the early selloff. This move follows several weeks of pressure across global government bond markets, with energy costs, federal borrowing requirements, and expectations for tighter monetary policy driving yields upward.
The combination of higher Treasury yields and rising oil prices has put downward pressure on risk assets, including crypto markets. Bitcoin traded near $76,800 on September 11 as rising oil prices reduced demand for non-yielding or volatile assets.
As the Federal Reserve begins its two-day policy meeting on Tuesday, market expectations have shifted significantly since the last meeting in July. Reuters reported that CME FedWatch pricing places the probability of a quarter-point increase at roughly 93%, which would lift the target range to 3.75%-4.00%.
The Fed's decision is expected to be announced on Wednesday, September 16, with an updated Summary of Economic Projections and a press conference scheduled for 2:30 pm ET.