10-Year Yield Hits 4.908% as Oil Tops $100 — SkimNews
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- 10-year U.S. Treasury yield surged more than 6 basis points to 4.908%, its highest level since November 2023 and the key benchmark for mortgage, auto loan, and credit card borrowing rates
- 2-year Treasury yield hit 4.518%, its highest trading level since July 2023, while the 30-year yield rose more than 4 basis points to 5.332% on broader geopolitical risk premia
- U.S. oil prices crossed $100 per barrel on fears of a prolonged U.S.-Iran conflict in the Middle East, with the move overshadowing an otherwise tame inflation print
- August wholesale inflation (PPI) rose 0.4%, in line with Dow Jones consensus; core PPI rose 0.2%, slightly below the forecasted 0.3% increase
- Treasury Secretary Scott Bessent announced Wednesday a $6 billion buyback of longer-dated government bonds — triple the normal level — contributing to Wednesday's yield rise
- Investors now look to Friday's consumer price index data for clearer inflation signals ahead of next week's Federal Reserve interest rate decision
Why it matters: The 10-year benchmark at 4.908% directly raises borrowing costs on mortgages, auto loans, and credit card debt. With oil back above $100 reigniting inflation fears, the Fed faces a more complicated rate path at next week's meeting — even though core PPI came in softer than forecasted at 0.2%, the geopolitical oil premium is dominating bond math.
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