US Treasury Yields Hit 20-Year Highs Amid Fed Rate Hike Expectations

US Treasury yields have reached their highest levels in over two decades as investors await further interest rate hikes from the Federal Reserve. The yield on the benchmark 10-year US Treasury note rose to 5.13%, up by 16 basis points from the previous day.

The surge in US Treasury yields has been driven by strong economic data, with business growth surging to its fastest pace in over five years and job gains accelerating according to the S&P Global PMI.

However, price pressures are also intensifying, with input costs rising to their highest level since October 2022. The sharp spike in costs is a concern for investors, who are watching closely as the Federal Reserve seeks to bring inflation back under control.