10-Year Treasury Yield Tops 5.3% as Hot Inflation Fuels Rate-Hike Bets
Updated
Updated · The New York Times · Oct 16
10-Year Treasury Yield Tops 5.3% as Hot Inflation Fuels Rate-Hike Bets
3 articles · Updated · The New York Times · Oct 16
Summary
The 10-year Treasury yield climbed above 5.3% last month, up from 4.2% at the start of the year, extending the bond selloff.
Wednesday’s strong U.S. inflation report reinforced expectations that the Federal Reserve will raise short-term rates again this year, with longer-term yields also at risk of moving higher.
Higher yields still change the math for investors: Treasuries, inflation-protected, corporate and municipal bonds now offer more income and a bigger cushion against future price declines for long-term holders.
That opportunity comes with near-term risk, because buyers who need to sell before maturity could still take losses if rates keep rising, while debt strains in France add to global bond-market pressure.