U.S. 10-year Treasury yield creeps closer to 3%Investing.com – U.S. government debt yields rose on Monday, with the benchmark 10-year note inching closer to the psychologically important 3%-threshold.
The benchmark hit an intraday high of 2.998%, a level not seen since January 2014. It was last at 2.988% by 6:20AM ET (1020GMT), up 3.5 basis points, or 1.2%.
The 10-year yield has not been above 3% – the point at which strategists and fund managers say equities will really hurt – since early 2014. It started the year at 2.4%.
Meanwhile, the yield on the Fed-sensitive hit a high of 2.478%, its strongest level since Sept. 2008, while the touched a peak of 2.828%, a level last seen in June 2009.
The yield on the was also higher at 3.174%.
Bond yields move inversely to prices. One basis point is equal to one hundredth of a percentage point.
The increase in U.S. bond yields helped underpin the dollar, which against a basket of major currencies.
The , which measures the greenback’s strength against a basket of six major currencies, was up 0.4% to 90.44, the strongest level since March 1.
The recent bounce in yields and the dollar came as strengthening inflation prospects added to expectations of a more hawkish approach from the Federal Reserve this year.
The majority of economists believe that the Fed will hike rates in June, followed by another hike in September, with a third move higher arriving in December.
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Source: Investing.com
