US Treasury 10-year yield nears 5% as oil shock fuels central bank rate hike expectations

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US Treasury 10-year yield nears 5% as oil shock fuels central bank rate hike expectations

⚡ Markets: Higher yields increase borrowing costs and discount rates for future earnings, creating a headwind for equities, particularly growth stocks. Bullish for the US dollar. Bearish for bonds (prices fall as yields rise) and gold.US 10YDXYSPXXAU

Spurred by surging oil prices and persistent inflation concerns, the US 10-year Treasury yield approached 5%, a level not seen since 2023. Markets are now pricing in a higher probability of interest rate hikes from the US Federal Reserve, Bank of England, and Bank of Japan, strengthening the US dollar and pressuring global equities.

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27 sources across the spectrum

Financial pressMarketWatch — Fed rate hikes won’t bring down gas prices. Why the bond market is pushing for them anyway.

Financial pressBloomberg — A 5% Treasury Yield Is Raising New Risks for Markets, Economy

Financial pressFinancial Times — Japan’s central bank set for pivotal moment on rates

Financial pressCNBC — U.S. Treasury yields are steady as 10-year closes in on 5% ahead of Fed rates decision

Financial pressWall Street Journal — Euro Declines as Dollar Gains on Fed Rate-Rise Expectations

Primary sourceECB — Isabel Schnabel: Macroeconomic, fiscal and financial stability in a shock-prone world

Financial pressFinancial Times — Fed and BoJ expect rate hikes as US bond market flails

Financial pressNikkei Asia — BOJ and Fed face critical test as market pressure rises on rates

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