▲ New York Stock Exchange
The yield on the 10-year US Treasury surpassed 4.75% during trading on the 31st local time, marking its highest level in 19 months since January of last year.
According to Bloomberg, this is the result of compounding inflation concerns driven by rising international oil prices and the possibility of a rate hike by the Federal Reserve (Fed).
On this day, the selling of government bonds spread across all maturities.
The 5-year Treasury yield also rose to its highest level since early last year, while the 30-year yield traded up 5 basis points to 5.26%.
International oil prices surged nearly 3%, hitting an intraday high after President Donald Trump hinted at the possibility of additional strikes against Iran.
Despite month-end bond index rebalancing on this day, long-term yields maintained their strength without a noticeable decline.
Previously, Fed Chair Kevin Warsh hinted at the possibility of interest rate hikes to curb inflation during the Jackson Hole Symposium on the 28th, causing short-term yields to spike.
According to the Chicago Mercantile Exchange (CME) FedWatch, the probability that the Fed will raise its benchmark interest rate by 0.25 percentage points at its meeting on the 16th of next month stood at 64.2% as of the 31st, jumping significantly from 41.4% a week earlier.
The August employment report to be released this week and the Consumer Price Index (CPI) on the 11th of next month are also cited as variables.
Following Chair Warsh's remarks, Barclays and Societe Generale revised their previous forecasts that there would be no interest rate hikes this year.
(Photo: AP, Yonhap News)
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