US longer-dated Treasury yields extend recent run-up after upbeat economic data
TLT•US longer-dated Treasury yields rose after upbeat economic data, with the 30-year yield reaching a 22-year high of 5.5319% and the 10-year yield a 19-year high of 5.2297%.
1. Yields reach fresh highs
Longer-dated US Treasury yields rose on Friday after durable goods data reinforced concerns about inflation. The 30-year yield was last up 2.4 basis points at 5.486%, while the 10-year yield was up 0.3 basis point at 5.165%.
2. Rate expectations increase
New orders for key manufactured capital goods rose more than expected in August, and the prior month's figures were revised sharply higher. Traders saw more than a 64% chance of another Federal Reserve rate hike at its next meeting in October, up from around 55% a week earlier. Oil prices eased as investors weighed the possibility of a truce between the US and Iran.
