U.S. Treasury Yields Soar to Multi-Decade Highs Amid Rate Hike Bets

U.S. Treasury yields are rising to multi-decade highs as investors bet on another rate hike from the Federal Reserve, according to Christine Tan, portfolio manager at SLGI Asset Management.

The increase in bond yields is driven by resilient economic data, persistent inflation, and a heavy supply of new bonds, which could put pressure on U.S. mortgage lending and other parts of the economy sensitive to interest rates.

Tan says company earnings and forecasts will be central to how stocks perform in the fourth quarter, with higher long-term yields potentially slowing down economic activity.

The Fed's decision to hike interest rates is also contributing to the rise in bond yields, with investors expecting another rate increase before the end of the year.