US Treasury Market Sees Yields Reach Multi-Year Highs Amid Fed Hike Bets

The US Treasury market ended a bruising week with investors more convinced that the Federal Reserve (Fed) will raise interest rates next week to address sticky inflation.

The $32 trillion US bond market saw yields reach multi-year highs, but Friday's trading was subdued after data showed a bigger-than-expected increase in prices excluding food and energy.

The 10-year Treasury yield rose to 4.97% following the report, while investors now see the probability of a Fed move next week at about 86%, with two hikes fully priced in by year end.