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The 10-year Treasury yield climbed to 5.07 percent on Wednesday, marking its highest level since 2007. The 30-year Treasury yield simultaneously touched 5.37 percent as the stock market declined.
Market participants are reacting to a combination of rising oil prices and business activity data that exceeded expectations, both of which have intensified concerns about further Federal Reserve rate hikes.
Federal Reserve Governor Michael Barr signaled on Wednesday that additional interest rate increases are necessary to reduce sticky inflation.
Investors adjusted their positioning, raising the probability of a Fed rate hike in October to 70 percent. This shift occurred as Brent crude contracts for November delivery rose to approximately $100 per barrel.
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