Treasury Yields Soar on Rate Hike Bets as SNB Keeps Rates Steady

US Treasury bond yields have surged to multi-year highs, driven by expectations of further Federal Reserve interest rate hikes. The benchmark 10-year government bond yield rose 9.8 basis points to reach 5.21%, a level not seen since June 2007. Concurrently, the 2-year Treasury yield advanced by 3.4 basis points to 4.93%, reaching its highest level since May 2024.

The Federal Reserve Bank of Cleveland President Beth Hammack stated that inflationary pressures remain elevated, warning that it will prove more difficult to return prices to the central bank's target if underlying pressures persist. This declaration has reinforced inflation fears, maintaining continuous selling pressure across the US bond market.

Meanwhile, the Swiss National Bank (SNB) decided to hold its benchmark interest rate steady at 0%, in line with analysts' expectations. The SNB stated that it deems it appropriate to maintain interest rates unchanged, as macroeconomic indicators continue to signal price stability and economic resilience.