The U.S. 10-year Treasury note yield hit its highest level since November 2023 on Wednesday, before edging slightly lower, allowing major domestic stock indexes to rise. This reprieve may be short-lived, as analysts believe the upward march in bond yields is not over. Ben Emons, founder of FedWatch Advisors, notes that markets are only pricing in 60 basis points of rate hikes through year-end, while the actual implied path would be around 120 basis points. West Texas Intermediate crude oil is trading around $90 per barrel, with traders pricing in a 66% chance of a quarter-point rate hike at the upcoming Federal Reserve policy meeting. According to Julia Hermann of New York Life Investment Management, the forces driving long rates higher remain unchanged, leaving few reasons to expect long-term yields to come down.
Source: Read the original article
