US Treasury Yields Soar Amid Fed's Interest Rate Hike Outlook
The US Federal Reserve's (Fed) outlook for further interest rate hikes has led to soaring US Treasury yields, breaking records in decades.
According to CNBC, the 30-year US Treasury bond rate rose to 5.501% after the New York market closed, the highest since 2004.
The 10-year US Treasury yield, a benchmark for global long-term interest rates, also surged to 5.22%, its highest level since June 2007.
Market watchers expect the Fed to raise its key interest rate by 0.25 percentage points on October 16th, followed by further hikes.
Chicago Mercantile Exchange (CME) FedWatch shows that the interest rate futures market reflects a possibility of the Fed raising its benchmark interest rate further at the Federal Open Market Committee (FOMC) in October, with a rapid increase from about 49% a week ago.