Treasury Yields Near Two-Decade Highs Weigh on US Markets
US markets are pointing to another day of losses as Treasury yields hover near two-decade highs, fueled by anxiety over high inflation and the government's heavy debt. The 10-year Treasury yield reached 5.14% on Wednesday, a substantial move higher that undercut prices for stocks and other investments.
The Federal Reserve Bank of New York President John Williams hinted that another hike to the Fed's benchmark interest rate this year would be 'a reasonable way of thinking about it.' He stressed that any decision will be made based on incoming data. Meanwhile, Fed Gov. Michael Barr said further hikes 'are likely to be needed' to get inflation to the Fed's 2% target.
The tech sector is particularly vulnerable to rate hikes, which can limit access to credit and slow growth. Chip makers Marvell Technology and Intel fell about 3% on Thursday.