On Monday, U.S. Treasury yields experienced a slight uptick, maintaining their multiyear highs as investors continued to evaluate the potential implications of prolonged higher interest rates set by the Federal Reserve.
As of 9:07 a.m. ET, the yield on the 10-year Treasury note, considered a benchmark, increased by 4 basis points to 4.961%. Simultaneously, the yield on the 30-year Treasury bond saw a climb of approximately 2 basis points to reach 5.11%. It’s important to note that yields move in the opposite direction to prices.
Last Thursday, the 10-year yield crossed the 5% threshold for the first time since July 2007. This followed Federal Reserve Chairman Jerome Powell’s statements, where he emphasized the central bank’s unwavering commitment to sustainably reducing inflation to 2%, suggesting that achieving this goal might require a slower pace of economic growth.
The latest indications from Fed fund futures pricing suggest a 98% likelihood that the central bank will maintain its main interest rate at the current target range of 5.25-5.5% during its upcoming monetary policy meeting.
Furthermore, auctions are scheduled for Monday, with $75 billion of three-month Treasury bills and $68 billion of six-month bills set to be offered.
