US Treasury Yields Soar as Fed Hawkishness Meets $100 Oil

The US 10-year Treasury yield reached a 19-year high near 5.10% after Federal Reserve Governor Michael Barr stated that risks to returning inflation to 2% have increased while risks to jobs have eased.

This move followed S&P Global flash PMI surveys, which came in well above forecast, and their price measures rose to the highest level since October 2022.

Brent crude climbed back above $100 a barrel after five straight daily falls, following Iranian President Pezeshkian's UN speech where he ruled out negotiating under pressure.

Rate futures put the probability of an increase on October 28 at about 73%, and bond market momentum is seeing incredible upward pressure on yields.