Yield on the 10-year Treasury hit a fresh 14-year high on Friday, while the 2-year note traded in territory last seen in 2007 as signs of a recession worried markets. The 10-year Treasury yield was last at 4.2843%, after rising by close to six basis points. This marked the highest level the benchmark note has traded at since 2008. The yield on the 2-year Treasury climbed to a new 15-year high of 4.639% on Friday. It was last almost flat at 4.609%. … Market concerns about a recession have been growing stronger in recent weeks, as data is reflecting signs of economic contraction, while the Federal Reserve continues to strike a hawkish tone. Speaking at a panel discussion of business leaders on Thursday, Federal Reserve Governor Lisa Cook said inflation was “too high” and that the central bank would continue to take measures to throttle it “until the job is done.” A 75 basis point rate hike is widely expected to be implemented at the Fed’s November meeting. Central bank speakers have said rate hikes will likely continue in 2023.
Source: CNBC – Bonds
