U.S. 30-Year Treasury Yield Tops 5% for First Time Since 2007 as Rate-Hike Bets Jump
Updated
Updated · Reuters · May 15
U.S. 30-Year Treasury Yield Tops 5% for First Time Since 2007 as Rate-Hike Bets Jump
9 articles · Updated · Reuters · May 15
The 30-year Treasury auction cleared at 5% for the first time since 2007, and the benchmark yield later touched 5.061%, extending a bond selloff that has intensified through the week.
Oil-driven inflation fears and still-resilient U.S. consumer spending are pushing investors to reprice the Fed path, with odds of another rate hike this year more than doubling in a week to 45%.
The move is spreading across the curve: the two-year yield climbed to about 4.055%, a one-year high, after earlier weak Treasury auctions signaled fading demand for U.S. debt.
That bond-market warning is hitting risk assets globally, with South Korea's KOSPI down more than 3%, Japan's Nikkei off over 1%, and Europe set for roughly a 1% lower open.
Why did Wall Street hit record highs while Asian markets plunged on the exact same global inflation fears?
Will central bank rate hikes cool inflation or just trigger a recession without solving the underlying energy crisis?
As the Middle East crisis deepens, is the global economy headed for its largest energy shock in modern times?