Lighthouse Canton flags “rates shock” as U.S. 10-year yield hits 5.13% on hot PMI, hawkish Fed talk - TLT News | RalliesLighthouse Canton flags “rates shock” as U.S. 10-year yield hits 5.13% on hot PMI, hawkish Fed talk
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TLT• Treasury yields hit multi-year highs
- Lighthouse Canton flagged a “rates shock” as hot US flash PMIs, sticky prices, and hawkish Fed messaging drove Treasury yields to multi-year highs.
- UST 10y traded near 5.13% and the 2y near 4.91%; the 5-year topped 5% for the first time since 2007.
- A weak 5-year auction stopped at 5.033% versus 4.393% previously; CME FedWatch October hike odds rose to about 73%.
Equities fell as higher rates weighed on valuations
- Equities sold off on a higher-rate valuation hit; Nasdaq dropped to 26,936.04 from 27,244.28, and the S&P still failed to confirm August highs.
- Brent crude eased to about $97.40, briefly rebounded near $103 on Iran headlines; softer oil failed to offset the duration selloff.
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