US Treasury Yield Surges to 4.75%, Highest Since January 2025

The US 10-year Treasury yield has reached its highest level since January 2025, climbing to 4.75% on Monday as oil prices increased.

This marks the fourth consecutive session of rising yields, prompting traders to bet on a potential Fed rate hike in September.

Fed Chair Warsh reinforced these expectations at the Jackson Hole Symposium, stating that 'the Fed would have work to do' if policymakers did not gain confidence that inflation was moving toward its 2% target.

The markets are currently pricing a 64% probability of a 25 bps rate hike in September.