US Treasury Yields Hit 2002 Highs Amid Fed Rate Hike Expectations

US Treasury bond yields have reached their highest level since 2002 as investors anticipate further interest rate hikes by the Federal Reserve. The 30-year US government bond yield rose to 5.57%, a milestone not seen in nearly two decades.

The increased expectations of tighter monetary policy are also driven by sustained high oil prices, with Brent crude futures settling at $96.16 per barrel and West Texas Intermediate (WTI) futures finishing at $89.40 per barrel.

Market participants are closely watching this week's releases of the Personal Consumption Expenditures (PCE) Price Index and the Bureau of Labor Statistics' employment report, which could further influence the Fed's stance on interest rates.

The Reserve Bank of Australia also increased its benchmark cash rate by 25 basis points to 4.6%, in line with analysts' expectations, as it aims to combat inflation above the target range.