30-year Treasury yield hits highest level since 2002
The yield on the 30-year U.S. Treasury bond rose to 5.613%, its highest since 2002, as investors priced in higher inflation expectations and possible Federal Reserve rate hikes.
U.S. Treasury yields increased on Tuesday, with the 30-year bond climbing 4 basis points to 5.609% and briefly reaching 5.613%, a level not seen since 2002. The 10-year Treasury note, a benchmark for mortgage and consumer loan rates, also rose 4 basis points to 5.285%, while the 2-year note held steady at 4.922%.
The moves come amid heightened concerns about inflation and the outlook for Federal Reserve policy. Traders using the CME FedWatch tool now assign a more than 72% probability to another rate increase at the Fed’s October meeting, following a unanimous 12-0 vote earlier this month to raise the policy rate by 25 basis points.
Analysts note that ongoing geopolitical tensions in the Middle East, including separate U.S. and Iranian talks aimed at ending the conflict, continue to influence energy prices and add to market uncertainty.