U.S. Treasury yields rose for a second session: the 10-year hit 5.2251%, a 19-year high, while the 30-year reached 5.5016%, its highest since 2004. Reuters said no clear trigger was apparent; the rise puts pressure on government borrowing and household mortgage costs.
Over two sessions, the 10-year yield climbed nearly 20 basis points, while the 30-year added 16 basis points overnight. A Treasury buyback totaled just $4 billion of the $6 billion scheduled. The sell-off spread across Asia: Japanese government yields reached levels last seen in 1996, and Australian 10-year yields neared a 15-year high.
Markets priced a 70% chance of another Federal Reserve rate hike next month and as much as 90 basis points of tightening in the current cycle. Norway's Norges Bank surprised markets with a rate hike, while Sweden's Riksbank signaled it was likely to follow by year-end. Nasdaq futures held steady; most Asian markets were closed, though Japan's Nikkei rose 1.2%, and European stock futures pointed to a 0.6% higher open. Oil slipped 1%, while Brent remained at $105 a barrel and the Middle East war was no closer to resolution.
