U.S. yields edge higher as AI fears ebb
TLT•TLT•TLT•TLT•U.S. Treasury yields edged higher on Monday as stocks recovered and concerns about the impact of higher interest rates on AI stocks eased. The 10-year yield rose 0.8 basis point to 5.106%, while markets priced a 17.2% chance of a Federal Reserve rate hike next week.
The benchmark 10-year Treasury yield rose 0.8 basis point to 5.106% on Monday, after falling 14.6 basis points last week. Stocks climbed in early trading as AI stocks recovered, while lower oil prices helped temper inflation concerns.
The National Association of Home Builders/Wells Fargo Housing Market index dropped three points to 29 this month, its lowest level since June 2012 and below economists’ estimate of 31. The 30-year Treasury yield rose 1.2 basis points to 5.447%.
The Treasury is scheduled to auction $13 billion in 20-year bonds on Wednesday and $26 billion in five-year Treasury Inflation-Protected Securities on Thursday. CME FedWatch showed a 17.2% chance of a Federal Reserve rate hike of at least 25 basis points next week, down from 21% a week earlier and 57.6% a month earlier.
