BlackRock's Rieder calls bond sell-off an eye-opener, not a crisis
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BlackRock global fixed income CIO Rick Rieder said the bond market sell-off is "not a crisis but an eye-opener." The 10-year Treasury yield hit 5.12% on Wednesday, its highest since 2007, while the 30-year yield touched 5.4%, the highest since 2004. Rieder's comments came as oil prices rose and business activity data came in hotter than expected, fueling concerns about further Fed rate hikes.
Key Facts
- The 10-year Treasury yield climbed as high as 5.12% on Wednesday, its highest level since 2007.
- The 30-year Treasury yield touched 5.4%, its highest level since 2004.
- New York Federal Reserve president John Williams said Thursday it was reasonable to think the Fed may need to raise interest rates again before year-end.
- Federal Reserve governor Michael Barr said Wednesday that additional interest rate hikes would be needed.
Bond Market Sell-off
The 10-year Treasury yield climbed as high as 5.12% on Wednesday, its highest level since 2007. The 30-year Treasury yield touched 5.4%, its highest level since 2004, while the 5-year yield also jumped to a 2007 high. Rates have stayed at these elevated levels today. The move higher in yields comes as oil prices advanced and business activity data came in hotter than expected.
Fed Rate Hike Concerns
Taken together, the rise in yields, oil prices, and business activity data fueled concerns about further Fed rate hikes. New York Federal Reserve president John Williams said Thursday it was reasonable to think the Fed may need to raise interest rates again before year-end to corral inflation. Williams echoed Federal Reserve governor Michael Barr's comments on Wednesday that additional interest rate hikes would be needed.
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