US 10-Year Treasury Yield Tops 5%, Highest Since 2007
Summary
- It said the US 10-year Treasury yield topped 5%, reaching its highest level since 2007.
- It said rising global oil prices, inflation concerns, and increased Treasury issuance pushed bond prices lower and drove yields higher.
- It said that if the 10-year yield remains in the 5% range, bond yields could affect money flows into risk assets such as stocks.
Forecast Trend Report by Period
The yield on the benchmark US 10-year Treasury note climbed above 5%, surging to its highest level since 2007. Rising oil prices, inflation concerns and increased Treasury issuance are weighing on the bond market.
Walter Bloomberg, an overseas financial news alert channel, reported on Sept. 15 that the US 10-year Treasury yield had topped 5%, reaching its highest level in about two decades.
Recent oil-price gains have added to inflation pressure, while large Treasury issuance has pushed bond prices lower and yields higher, Walter Bloomberg reported. Markets are also increasingly pricing in the possibility that the Federal Reserve will raise its benchmark interest rate on Sept. 16.
If the 10-year yield remains above 5%, relatively high bond yields could affect fund flows into risk assets such as stocks. Some market strategists say yields could rise further, with 6% also being discussed.
