U.S. Treasury yields extended their upward trend on Thursday, with the benchmark 10-year yield at 5.124%, after hitting a 19-year high of 5.104% in the previous session. Stronger-than-expected U.S. economic data drove the selloff, including a services PMI of 58.7 in September, the highest in nearly five years, and a manufacturing PMI of 56.7, its highest in over four years. Traders are now pricing in a 70% chance of another Federal Reserve rate hike at the October FOMC meeting, according to the CME Group’s FedWatch tool. The move is part of a broader global government bond selloff, with Japan’s 10-year JGB yield reaching its highest level since August 1996.
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