Live Updates > Live Update Details
2026-09-19 06:48:12
[US Treasury Yields Rise Across the Board, 2-Year Yield Hits Highest Level Since July 2024] ⑴ US Treasury yields rose on Friday, with the 2-year yield climbing to its highest level since July 2024. ⑵ This followed the Federal Reserve's first rate hike in three years this week, and investors are assessing the subsequent path of interest rates. ⑶ As inflation concerns intensify, the market is closely watching the prospects for a new round of global interest rate hikes. ⑷ The Bank of Japan raised its interest rate to its highest level in 31 years on Friday, with the governor stating that it has entered a new phase of preventing inflation from exceeding its target. ⑸ The Federal Reserve raised rates on Wednesday and hinted at further tightening in the coming months, with the chairman making hawkish comments. ⑹ Some strategists say that the 2-year yield will fluctuate in tandem with rate hike expectations, and the market is currently more inclined to price in more rate hikes than rule them out. ⑺ Futures data shows that traders expect a greater than 55% probability of another rate hike at the Fed's next meeting in October, up from 53% on Thursday evening. (8) The spread between 2-year and 10-year yields was last at approximately 25.5 basis points, having touched 23.8 basis points intraday, the flattest since June 25. (9) The short end rose faster than the long end, partly due to rising expectations of interest rate hikes, while the Fed's intention to control inflation limited the rise in the long end. (10) Some believe that, for long-term bonds, this meeting somewhat calmed market anxieties. (11) Friday's data showed that US manufacturing output unexpectedly declined in August after seven consecutive months of growth, but yields mostly maintained their gains. (12) The surge in oil prices related to the US-Israel conflict over Iran was one source of inflation concerns, although oil prices retreated somewhat after China urged Iran to restrain Houthi attacks on Saudi oil facilities. (13) The benchmark 10-year yield was last at 5%, up 5.3 basis points, after touching a new high since 2007 at 5.041% on Tuesday. 14. The 2-year yield rose 5.3 basis points to 4.743%, after previously reaching 4.7475%; the 30-year yield rose 3.6 basis points to 5.332%.
