10-year Treasury yield leaps to fresh 19-year high after hot economic readings
Treasury yields traded higher on Wednesday as new services and manufacturing sector data increased worry of further Federal Reserve rate hikes.
TL;DR
- Treasury yields increased significantly on Wednesday.
- Strong services and manufacturing sector data fueled worries of further Federal Reserve rate hikes.
- The 10-year Treasury note yield reached its highest level since July 2007.
- US business activity is booming in both manufacturing and services sectors.
- Input costs have risen sharply, particularly fuel and transport, due to increased oil prices.
- Fed Governor Michael Barr suggested more rate hikes are likely necessary.
- Market expectations for an October quarter-point rate increase rose to 64%.