US 10-year Treasury yield reaches 19-year high — CNBC Top News

In the United States, the yield on 10-year government bonds continued to rise after reaching a 19-year high in the previous session. On Thursday morning, it increased by one basis point to 5.124%, CNBC Top News reports.

Rising bond yields

The yield on 30-year US Treasury bonds rose by more than one basis point to 5.42%. The yield on two-year securities was almost unchanged at 4.895%.

The move came amid a global sell-off in government bonds. The yield on 10-year Japanese government bonds rose by eight basis points to 3.055%, the highest level since August 1996. Yields on UK government bonds and German Bunds also increased.

One basis point equals 0.01 percentage points. Bond prices and their yields move in opposite directions.

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Expectations of new Fed steps

Among the factors behind the sell-off in US government bonds, CNBC cites stronger-than-expected data on US economic activity, hawkish comments from a Federal Reserve representative, and high oil prices.

The S&P Global purchasing managers' index for the services sector rose to 58.7 points in September, the highest level in nearly five years. The manufacturing-sector index increased to 56.7 points, its highest level in more than four years.

After the release of these data, traders put the probability of another rate hike by the Federal Open Market Committee at its October meeting at 70%, according to CME Group FedWatch data. Federal Reserve Board Governor Michael Barr said that further policy adjustments would likely be needed to bring inflation back to its target level.

Investors were also awaiting weekly data on unemployment benefit claims and US new home sales statistics for August.