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The benchmark Treasury yield rose above 5 percent on Monday as investors priced in a Fed rate hike this week following a jump in oil prices and inflation fears.
The benchmark yield rose as high as 5.01 percent, the highest level since October 2023, according to market data.
Treasury bond yields represent the return that investors receive for lending to the U.S. government over different periods.
They move in the opposite direction of prices, meaning that higher yields usually reflect falling bond prices or investors demanding a better return to buy the debt.
Mohamed El-Erian, economist and Allianz adviser, said in a Sept. 14 post on X that with U.S. 10-year government bond yields crossing the 5 percent threshold, “today’s move up is even more dramatic in higher-beta G7 sovereign bonds like UK gilts.”…
The benchmark yield rose as high as 5.01 percent, the highest level since October 2023, according to market data.
Treasury bond yields represent the return that investors receive for lending to the U.S. government over different periods.
They move in the opposite direction of prices, meaning that higher yields usually reflect falling bond prices or investors demanding a better return to buy the debt.
Mohamed El-Erian, economist and Allianz adviser, said in a Sept. 14 post on X that with U.S. 10-year government bond yields crossing the 5 percent threshold, “today’s move up is even more dramatic in higher-beta G7 sovereign bonds like UK gilts.”…
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