U.S. 10-year Treasury yield hits 5% as markets price in Fed rate hike

The U.S. 10-year Treasury yield surpassed the 5% psychological threshold on September 14, reaching its highest level since October 2023. This surge is driven by rising oil prices due to Middle East geopolitical tensions, persistent inflation, and market expectations that the Federal Reserve will implement a 25-basis-point rate hike at the upcoming FOMC meeting on September 16. The rise in yields is expected to increase borrowing costs and pressure risk assets, including stocks and cryptocurrencies.