10-year yields highest since 2023

Business Recorder reported that benchmark US 10-year Treasury yields touched their highest level since 2023 on Wednesday. The climb followed an enlarged buyback of longer-dated bonds, which disappointed investors who had hoped for a bigger programme. Bond prices fell and yields rose in response, and a Mischler Financial strategist said the market had expected a buyback above $6 billion.

Yields later eased from those peaks after the Treasury sold $39 billion of 10-year notes and drew heavy bids, with demand reaching 2.71 times the amount on offer, the highest ratio since 2019. The notes priced at a 4.834% yield. Di Galoma of Mischler Financial said investors may have viewed the upcoming purchases of 10- to 20-year paper as a low-risk trade.

Oil prices rose above $100 for the first time since July as the conflict in the Middle East intensified. Traders now price in about 60% odds of a Fed rate hike at the September 15-16 meeting, after US employers added far more jobs than expected in August.