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08.06.202602:20:49UTC+00US 10-Year Treasury Yield Hits 2-Week High

The yield on the US 10-year Treasury note rose to about 4.57% on Monday, its highest level in two weeks, after stronger-than-expected US employment data reinforced expectations that the Federal Reserve could raise interest rates later this year. Friday’s report showed the US economy added 172,000 jobs in May, well above the consensus forecast of 85,000, while the unemployment rate held steady at 4.3%. In response, markets increased the implied probability of a Fed rate hike in December to nearly 70%, up from around 50% before the data. Even so, the Fed is still widely expected to leave rates unchanged at its June 16–17 meeting under new Chairman Kevin Warsh. Expectations of tighter monetary policy were further underpinned by rising tensions in the Middle East, which pushed oil prices higher and stoked concerns about a resurgence in inflationary pressures.

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