The yield on 10-year U.S. government bonds hit 4% for the first time in more than a decade Wednesday, the latest leg of a historically steep rise that has jolted financial markets this year. Yields, which rise when bond prices fall, have been climbing at their fastest pace in four decades because of escalating expectations for how high the Federal Reserve will raise short-term interest rates to tamp down the worst inflation since the 1980s. … The yield on the benchmark 10-year U.S. Treasury note touched above 4% briefly in European trading hours, before slipping back. It was at 3.985%, up from 3.963% Tuesday and roughly 3.1% at the end of August. Through Monday, it had climbed nearly 2.5 percentage points this year, the largest increase over that period since 1981.
Source: WSJ.com: Markets
