Treasury Yield Hits 15-Year High as Rate Hike Fears Intensify

The US Treasury yield hit a 15-year high of 5.223% on September 24, as investors grew concerned about persistently high interest rates.

A combination of strong US growth, high global oil prices, and a market-implied probability of over 70% for another Fed rate hike fueled the increase in yields.

The jump in long-term yields reflected both the strength of the US economy and persistent inflation concerns. Recent purchasing managers' index data pointed to steady economic activity, while elevated oil prices reinforced the view that the Federal Reserve could maintain its tightening stance.

CME FedWatch data showed a more than 70% chance of a rate hike in October, up from about 55% a week earlier, driven by strong recent US economic data and hawkish comments from Fed officials.