U.S. Treasury yields continue to rise, with investors worried about the Fed's next move against a backdrop of elevated inflation and robust economic data. The yield on the 10-year Treasury (V2Y00) is lingering near a new multi-year high of 4.98% today, its loftiest level since 2007.
The uptick in yields follows this week's economic data, featuring stronger than expected reports on both retail sales for September and weekly jobless claims, which just fell to their lowest level since January. The Federal Reserve has hiked interest rates repeatedly since the start of 2022 to reduce the money supply in the economy and rein in inflation - but the labor market remains surprisingly resilient, suggesting interest rates may yet move higher in the near term.
