US 10-Year Treasury Yield Hits 19-Year High Amid Inflation Concerns

The US 10-year Treasury yield has reached its highest level in nearly two decades, settling at around 5.17% on Friday. This milestone is a result of the ongoing bond rout, which has pushed yields to levels not seen since 2007.

According to Federal Reserve Chair Kevin Warsh, inflation remains stubbornly high, and the labor market is expanding rapidly. The Iran conflict and its impact on crude oil prices have also contributed to this upward trend in Treasury yields.

The bond market pricing suggests a high likelihood of an October Fed hike, with odds above 70%. This would mark the sixth consecutive rate hike since May, further tightening monetary policy.