Treasury yields hit multi-year highs as investors await key wholesale inflation data — SkimNews
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- 10-year Treasury yield rose more than 2 basis points to 4.867%, its highest level since November 2023 and the key benchmark for mortgage and auto loan borrowing
- 2-year Treasury yield hit 4.449%, the highest since July 2024, while the 30-year Treasury bond yield climbed past 5.315%, tracking broader geopolitical risk
- Treasury Secretary Scott Bessent said the department will buy back $6 billion of longer-dated government bonds, which pushed yields higher on Wednesday
- The August PPI print is expected to show a 5.4% year-over-year wholesale inflation increase, up from 4.7% in the prior report, with Friday's CPI data and next week's Fed decision also in focus
- West Texas Intermediate crude rose 1.5% to $97.45 per barrel and Brent crude gained 0.9% to $102.16 as renewed U.S.-Iran hostilities pushed energy prices higher
- President Trump predicted energy prices would "tumble downward" after midterm elections, claiming the Middle East war would conclude "immediately after the election"
Why it matters: Higher Treasury yields translate directly into more expensive mortgages, auto loans, and credit card debt for consumers, while the expected jump in wholesale inflation (5.4% versus 4.7% prior) could keep the Federal Reserve from cutting rates next week. Brent above $102 from the Iran conflict adds another inflation headwind that may delay monetary easing despite Trump's promised post-election price collapse.
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