10-year Treasury yield climbs to fresh 14-year high

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Yield on the 10-year Treasury hit a fresh 14-year high on Friday, while the 2-year note traded in territory last seen in 2007 as signs of a recession worried markets.

The 10-year Treasury yield was last at 4.316%, after rising by nine basis points. The benchmark note has note traded at this level since 2008.

The yield on the 2-year Treasury climbed to a new 15-year high of 4.639% on Friday. It was last up slightly for the day at 4.618%.  

The 30-year Treasury yield, which is key for mortgage rates, jumped 15 basis points to 4.366%.

Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.

Market concerns about a recession have been growing stronger in recent weeks, as data is reflecting signs of economic contraction, while the Federal Reserve continues to strike a hawkish tone.

Speaking at a panel discussion of business leaders on Thursday, Federal Reserve Governor Lisa Cook said inflation was “too high” and that the central bank would continue to take measures to throttle it “until the job is done.”

A 75 basis point rate hike is widely expected to be implemented at the Fed’s November meeting. Central bank speakers have said rate hikes will likely continue in 2023.

New York Fed President John Williams is due to make remarks on Friday

The yield on British gilts climbed on Friday, with the 10-year gilt last trading up by around 10 basis points at 4.009%. U.K. bond and currency markets have been on a volatile ride in recent weeks as a result of economic turmoil in the U.K. that cumulated in the resignation of Prime Minister Liz Truss on Thursday.

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