US 10-year Treasury yield hits 5.05%, highest since July 2007, with mortgage rates approaching 7.50%.
Macro & Markets ·
US Treasury yields climbed to their highest levels in roughly 17 years on Wednesday, with the five-year yield crossing 5% and the 10-year reaching 5.13%, driven by stronger economic data, elevated oil costs, and lackluster demand at a $70 billion five-year auction that cleared 3 basis points above expectations. The 30-year yield approached 5.4%, marking near-parity with 2007 highs, while rate derivatives now reflect expectations for three additional Fed rate increases of 25 basis points each over the coming year. Equity markets declined alongside the selloff, with the S&P 500 dropping 0.8%.