The 10-year Treasury yield hit 5.12% Wednesday, its highest since 2007; the 30-year reached 5.4%, last seen in 2004. BlackRock’s Rick Rieder called the rise “not a crisis but an eye-opener.” Yields stayed elevated Thursday.
The five-year yield also rose to a 2007 high. Rising oil prices and business-activity data that came in hotter than expected fueled concerns about further Federal Reserve rate hikes. On Thursday, New York Fed President John Williams said it was reasonable to think the Fed may need another increase before year-end to curb inflation, echoing Fed Governor Michael Barr’s Wednesday comments that more hikes would be needed.
