Traders at work at the New York Stock Exchange on May 13, 2026.
new york stock exchange
U.S. Treasury yields soared Thursday, pushing the 10-year yield above 5% on rising oil prices and expectations for further interest rate hikes from the Federal Reserve.
yield of 10 years US Treasury The note, a benchmark for mortgages, auto loans and credit card debt, rose more than 13 basis points to 5.125%.
of 2 year Treasury bill The yield, which is more sensitive to the Fed’s short-term interest rate decisions, rose more than 15 basis points to 4.879%. something older 30 year government bond The yield rose 10 basis points to 5.449%.
One basis point is equal to 0.01%, or one-hundredth of 1%, and yield and price are inversely proportional to each other.
The rise in oil prices came as President Donald Trump said there was no need for a deal with Iran, raising concerns that the Middle East war would continue indefinitely. West Texas Intermediate Futures It rose more than 2% to close at $88.74 per barrel. brent crude oil The price was more than 3% higher at $95.82 per barrel.
Tuesday’s better-than-expected consumer price index has investors hoping for further interest rate hikes from the Fed. Goldman Sachs added another rate hike to its forecast on Wednesday, saying it expects another quarterly percentage point hike in March.
Traders are pricing in a 100% chance of a rate hike in December, according to CME Group’s FedWatch tool, and the chance of a 0.5 percentage point hike is about 13%.
Another inflation report is expected on Friday, with the producer price index, a measure of wholesale prices, expected to rise 0.4% in October, slowing from a 1.3% rise in September.
Investors on Thursday focused on the National Association of Realtors’ October home sales report, which found existing home sales hit a 16-year low last month.
“Fed officials want to raise interest rates even higher to fight inflation, but this only pushes the housing adjustment deeper into recession,” said Chris Rupkey, chief economist at FWDBONDS. “It’s pitch black outside and homebuyers are nowhere to be found.”
