US Treasury Yield Hits 19-Year High Amid Fed Hawkishness
The US 10-year Treasury yield rose sharply on Thursday, reaching its highest level in nearly two decades. The yield jumped to 5.148%, surpassing July 2007's mark of 5.148%. This increase comes as a result of strong expectations that the Federal Reserve will continue normalizing monetary policy.
Several Federal Reserve officials have made hawkish comments, contributing to the rise in Treasury yields. Minneapolis Federal Reserve President Neel Kashkari stated that inflation remains too high and has broadened beyond the oil price shock caused by the war in Iran.
Additionally, preliminary data showed that the US manufacturing sector expanded at its fastest pace in 52 months in September, while the services sector grew at its fastest pace in 59 months. As a result, investors are closely monitoring further US economic data and comments from Federal Reserve officials to reassess expectations.