Yield on 10-year Treasury hovers above 5% as investors await Fed decision

Live updates

1. 2h ago

   10-Year Treasury Yield Hovers Above 5% Ahead of Fed Rate Decision

   The benchmark 10-year Treasury yield is holding above 5 percent, reaching its highest level since 2007 as investors await an upcoming Federal Reserve rate decision. Wall Street indices finished lower alongside falling Dow futures as rising yields and surging oil prices placed pressure on stocks. Oil prices topped $109 per barrel while markets monitored corporate movements, including a 7 percent surge in Intel alongside declines for American Express and IBM. The climb in bond yields and energy costs reduced market appetite for equities ahead of the central bank announcement.

   Why it matters

   Rising bond yields generally increase borrowing costs across the economy and make fixed-income investments more attractive relative to equities, which pressures stock valuations. Energy price spikes complicate the inflation backdrop for central bankers. Market participants are closely evaluating how these macroeconomic pressures will influence monetary policy moving forward.

   What is confirmed

   • The 10-year Treasury yield breached 5% and hovered above that level.
   • Wall Street ended lower as oil prices spiked.
   • The 10-year yield reached its highest level since 2007.
   • Intel shares surged 7% while American Express and IBM fell.

   Still unconfirmed

   • The Dow Jones fell 800 points after a Fed rate hike to 3.75%-4.00% following a speech by Fed Chair Warsh.

   What to watch next

   • The official Federal Reserve rate decision announcement
   • Subsequent movements in oil prices above $100 per barrel
   • Further direction of Dow Jones futures and major stock indices
   Sources used for this update (7)

   1. WSJ — Stock Market Today: 10-Year Yield Above 5% With Dow Futures Lower — Live Updates
   2. Reuters — Wall Street ends lower as oil spikes and the benchmark Treasury yield breaches 5%
   3. CNN — 10-year Treasury yield hits highest level since 2007 ahead of Fed rate decision
   4. CNBC — Yield on 10-year Treasury hovers above 5% as investors await Fed decision
   5. Axios — Rise in yields takes some shine off stocks
   6. sundayguardianlive.com — LIVE | Dow Jones, Nasdaq, US Stock Market Today: Check Latest Move in Futures, Dow Jones Falls 800 Points as Fed Raises Rates to 3.75%-4.00% After Fed Chair Warsh Speech | Why ...
   7. sundayguardianlive.com — Dow Jones Today LIVE: Index Drops 200 Points As Oil Prices Tops $109, Treasury Yields Hit, Intel Surges 7%, American Express & IBM Fall Ahead of Fed Decision | Ch…
   confidence 90%