US 10-year treasury yield surges to 1.75% after Fed forecast
Inflation expectations drive bearish trend in treasuries with borrowing costs at the highest since January 2020
Treasury yields breached key levels as traders boosted bets the Federal Reserve will allow inflation to overshoot amid an economic rebound.
Yields on the benchmark 10-year note climbed as much as 11 basis points to 1.75% — the highest since January 2020, while the 30-year jumped to 2.5% for the first time since August 2019. Market measures of inflation expectations are near multiyear highs, with traders paring back bets the Fed would start tightening as soon as late next year. The dollar rebounded against its major peers. Treasury yields pared some gains but remained elevated during New York morning trading...
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