Brent oil and bond yields hit multi-year highs
Brent crude prices reached $109.97 a barrel, a four-month high. The yield on 10-year U.S. Treasury notes rose to 4.9708%, the highest level in three years. Markets are pricing in a Fed rate hike amid the U.S.-Iran conflict.
Sources
· 3Нефть взлетела до $110, доходности облигаций обновили многолетние максимумы
1Доходность 10-летних казначейских облигаций США достигла 4,91%, максимума с 2023 года, на фоне роста нефти до $105
2Доходность мировых облигаций достигла максимума с 2008 года на фоне опасений по нефти и ФРС
3Key points
- The yield on 10-year U.S. Treasury notes rose to 4.9708%, a three-year high, while the 30-year yield rose to 5.35%.
- The Bloomberg global government bond index reached 3.72%, the highest since mid-2008, while the 10-year Japanese government bond yield rose to 3% for the first time since 1996.
- The market is pricing in a Fed rate hike at next week's meeting, with a probability of about 70% this month.
What happened
On Thursday, the yield on 10-year U.S. Treasury notes rose to 4.91%, the highest since 2023, while the 30-year yield rose to 5.35%. On Friday, the 10-year yield climbed to 4.9708%, a three-year high. Earlier, on Monday, the Bloomberg global government bond index reached 3.72%, the highest since mid-2008, and on Tuesday the 10-year Japanese government bond yield rose to 3% for the first time since 1996. Australian bonds soared to levels last seen in 2011.
Why it matters
The bond sell-off intensified on expectations of a Fed rate hike: the market was pricing in a probability of about 70% this month, and a rate hike ahead of next week's meeting. After Fed Chair Kevin Warsh's speech in Jackson Hole, where he reaffirmed the intention to curb inflation, the U.S.-Iran conflict heightened concerns about oil supplies.
What to watch
Fed policymakers will meet next week, and the market is pricing in a rate hike with a probability of about 70% this month.
What's Next
The Fed meeting next week, where the market is pricing in a rate hike.
Related original articles
- 2h agoНефть взлетела до $110, доходности облигаций обновили многолетние максимумыInbusiness.kz
- 15h agoДоходность 10-летних казначейских облигаций США достигла 4,91%, максимума с 2023 года, на фоне роста нефти до $105Yahoo Finance
- Sep 1Доходность мировых облигаций достигла максимума с 2008 года на фоне опасений по нефти и ФРСYahoo Finance