The 10-year Treasury yield (^TNX) reached 5.12% on Wednesday, marking its highest point since 2007. Meanwhile, the 30-year Treasury (^TYX) yield hit 5.37%, and the 5-year yield also climbed to a 2007 peak as the stock market experienced a decline.
The upward trend in yields follows a rise in oil prices and inflation.
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“We believe the Fed is on track for an additional rate hike in December,” EY-Parthenon chief economist Gregory Daco said Wednesday, adding that the move increases the risk of a stock market correction.
Long-dated bond yields have trended upward throughout the year as <a s 2% objective.
