10-year Treasury yield rises to highest since 2007 as Fed rate-hike expectations rise

Livestream Menu The 10-year yield jumped more than 6 basis points to 5.025%. The yield on the longer-dated 30-year Treasury bond was up over 5 basis points at 5.384%. Traders work on the floor of the New York Stock Exchange (NYSE) on September 09, 2026 in New York City. Spencer Platt | The benchmark 10-year Treasury yield climbed to its highest level since 2007 on Tuesday as a sell-off in U. S. government debt deepened ahead of the Federal Reserve's interest-rate decision. The 10-year yield jumped more than 6 basis points to 5.025% as of 1.10 a. m. On Monday, the 10-year yield had briefly crossed 5%, before sliding a little. One basis point equals 0.01 percentage point, and yields and prices move in opposite directions. S. 10-year Treasury since the start of the year The yield on the longer-dated 30-year Treasury bond, more sensitive to geopolitical risks, was up over 5 basis points at 5.384%. The 2-year Treasury note yield climbed about 4 basis points to 4.68% The move comes ahead of the Federal Reserve's two-day policy meeting beginning Tuesday, with markets pricing in higher chances of a quarter-point rate hike after August inflation remained well above the central bank's 2% target. Traders are pricing in a more than 92% chance that the Fed will raise rates by 25 basis points in its latest meeting, according to the CME FedWatch tool. "U. S. 10-year treasuries are highly sensitive to inflation expectations, and with inflation gauges still above the Fed's target of 2%, we believe this tight correlation will likely persist for a while," said Jonathan Liang, Standard Chartered's CIO of fixed income and FX. The tight relationship between oil and Treasurys could add further upward pressure on yields if crude prices remain elevated, as higher energy costs feed into inflation expectations, said experts told CNBC.