US Treasury Yields Surge to Multi-Year Highs on Strong Data and Hawkish Fed Remarks
| Pair | Now | Since publish |
|---|---|---|
| EURUSD | — | — |
| GBPUSD | — | — |
| USDJPY | — | — |
- 10-year yield hits 19-year high near 5.20% on strong data.
- 30-year yield surges to 22-year peak above 5.46%.
- Hawkish Fed commentary and robust data continue to drive yields.
US Treasury yields surged to multi-year highs this week, with the benchmark 10-year Treasury yield reaching a 19-year peak above 5.10% on Wednesday and extending to 5.18% on Thursday. This upward momentum was fueled by robust US economic data, including an S&P Global flash Purchasing Managers Index (PMI) that exceeded forecasts and showed prices rising to their highest since October 2022. Further bolstering rate hike expectations, Fed Governor Barr indicated a growing risk to the inflation target and easing job risks, supporting more monetary tightening. The 30-year Treasury bond yield also climbed, reaching 5.444% on Thursday, contributing to a broader global government bond selloff and strengthening the US Dollar (USD). These elevated yields imply higher borrowing costs across the economy.
US Treasury yields exhibited mixed movements on Friday, though the long-end of the curve continued its upward trajectory. The 30-year Treasury bond yield surged to its highest level in 22 years, reaching levels not seen since 2004, and was last reported around 5.463%. The benchmark 10-year Treasury yield held firm near 5.20%, after peaking at 5.228% and marking a 19-year high. The 2-year note yield remained largely unchanged around 4.899%. Hawkish commentary from Federal Reserve officials and robust economic data continued to be the primary drivers of these elevated yields.