US 10-Year Treasury Yield Breaks 5%, Dollar Soars Amid Rate Hike Bets

The US 10-year Treasury yield has broken through the 5% barrier for the first time since 2023, rising by over 4 basis points. This development comes as investors have almost fully priced in a 25-basis-point rate hike by the Federal Reserve on September 16. The US 10-year is currently at 5.006%.

Market expectations are that there's a 93% chance of a rate hike, according to Prime Terminal. This has led to a strengthening of the US Dollar, with the DXY up nearly 0.60%, reaching 99.66 after bouncing from 99.07.

The upcoming Federal Open Market Committee (FOMC) meeting is being closely watched for updates on economic projections and the 'dot-plot', which could provide insight into future interest rates.