U.S. Treasury Yields Rise as Global Bond Selloff Resumes — SkimNews
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- U.S. Treasury yields edged higher on Monday, with the benchmark 10-year note yield rising more than 2 basis points to 5.2087% in early dealmaking
- The 30-year Treasury bond yield increased 1 basis point to 5.5162%, while the 2-year note yield jumped more than 4 basis points to 4.9056%, reflecting short-term Fed rate expectations
- Global bond yields also rose, with the UK 10-year Gilt yield up 4 basis points to 5.4099%, German 10-year Bunds holding steady at 3.6277%, and both French and Japanese 10-year yields climbing
- The moves followed a volatile week in which the 10-year Treasury yield hit its highest level since June 2007 on Thursday and the 30-year reached levels not seen since 2004
- West Texas Intermediate crude futures rose almost 2% to $94.19 a barrel, amplifying inflation concerns among bond investors
- Investors are bracing for a heavy week of U.S. economic data, including Tuesday's JOLTS report (forecast at 7.24 million job openings, down from 7.27 million), followed by core PCE, quarterly GDP, and the monthly nonfarm payrolls and unemployment figures
Why it matters: Mortgage, auto loan, and credit card borrowing costs — all tied to the 10-year Treasury yield — just hit their highest level since 2007, and rising oil prices near $94 threaten to keep inflation sticky, potentially keeping the Fed cautious about rate cuts while bond investors await this week's jobs and inflation data.
Ask SkimNews
