Treasury Yields Climb as Fed Rate Hike Odds Hit 62% — SkimNews
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- U.S. Treasury yields rose Thursday, with the 2-year yield gaining 10 basis points to 4.53% and the 10-year hovering near 4.91% as traders adjusted to monetary policy staying "higher for longer."
- Markets priced in a 62% chance of a Fed rate hike ahead of next week's Fed policymakers' meeting, a hawkish shift ahead of a key inflation print due later this week.
- Brent crude futures topped $105 per barrel amid continued Iran-US tensions in the Middle East, adding fuel to the inflation-and-rates narrative.
- U.S. stocks were on track for their fourth consecutive day of declines, with the tech sector (XLK) falling more than 1% as Nvidia and Magnificent Seven names led the selloff.
- Materials (XLB), Consumer Discretionary (XLY), and Industrials (XLI) sectors also declined in Thursday's session, reflecting broad-based risk-off sentiment.
- Apple, Macy's, and Cloudflare were among the most-viewed tickers by Yahoo Finance readers Thursday morning, per Yahoo Finance AlphaSpace data.
Why it matters: Bond holders take mark-to-market losses as the 2-year jumps 10 bps and the 10-year nears 4.91%, while equity bulls face a hawkish Fed repricing—62% odds of a rate hike, not a cut. With Brent above $105 and an inflation print still ahead, the Fed's "higher for longer" stance is getting priced in across rates, energy, and risk assets simultaneously.
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