U.S. yields rise as rate hike views grow, 30-year yield hits highest since 2004
TLT•U.S. Treasury yields rose as investors weighed further Federal Reserve rate hikes; the 30-year yield reached 5.5016%, its highest since June 2004, and the 10-year yield hit a 19-year high.
1. Yields reach new highs
The 30-year Treasury yield rose as high as 5.5016% on Thursday, its highest level since June 2004, and was last up 7 basis points at 5.472%. The 10-year yield reached 5.2251%, a fresh 19-year high, and was last up 7.1 basis points at 5.185%.
2. Rate hike expectations
Investors weighed comments from Federal Reserve officials that additional rate hikes may be needed to curb high inflation. Traders saw roughly a 70% chance of another increase at the Fed’s October meeting, up from 66% late Wednesday. The Treasury Department said it bought back $4.078 billion in 20- to 30-year bonds to support market liquidity.
