US Treasury Yields Soar as 30-Year Yield Hits 22-Year High

US Treasury yields have risen as the 30-year yield hit its highest level in 22 years. The sudden shift in hawkish commentary from Federal Reserve officials and last week's 25-basis-point rate hike were key catalysts for this increase. US Treasury yields turned mixed on Friday, with the long-end of the curve posting gains while the short-end and belly retreated to multi-year high levels.

The 30-year bond yield rose to its highest level since June 2004, reaching 5.5016%. Meanwhile, the 10-year Treasury yield remains anchored near 5.20%, as rising inflation expectations keep it steady. Hawkish commentary from Federal Reserve officials, including Fed Governor Michael Barr, has cemented the case for a 25-basis-point rate hike towards the end of the year.

Money markets see a 64% chance of a Fed rate hike in the October 28 meeting and a 92% chance for the December meeting. Worldwide yields remain underpinned by high oil prices, which continue to prolong the US-Iran war and keep inflationary pressures elevated.