Treasury Yields Rise as Global Bond Selloff Continues
US Treasury yields rose slightly on Friday as investors digested hawkish comments from the Federal Reserve and strong economic data. The benchmark 10-year Treasury note reached its highest rate since June 2007, trading at around 5.17%. The 30-year Treasury bond was flat at 5.463%, while the 2-year note yield remained largely unchanged at 4.899%.
The recent selling pressure in global bonds has intensified, with Japanese government bonds and other eurozone bonds hitting fresh highs this week. However, yields on these assets edged lower on Friday, providing some respite from the selloff. The Federal Reserve's hawkish comments, led by Governor Michael Barr, have driven up Treasury yields as investors expect further policy adjustments to bring inflation down.
Oil prices remain stubbornly high, and a strong purchasing managers' index report has also contributed to the rise in Treasury yields. Traders are pricing in a nearly 71% chance of a rate hike in October, according to the CME FedWatch tool. Looking ahead, investors will monitor the University of Michigan consumer sentiment report and durable goods data for further insight into the economy.