Bond Yields Hit 2007 Highs as 10-Year Jumps to 5.21%, Stocks Recover
IXIC sits 30% above its 52-week low of $20,690.249.
Summary
The 10-year Treasury yield surged to 5.21%, the highest since 2007, up over 20 basis points in two sessions, while the 30-year yield approaches 5.5%, a level not seen since 2004. This bond market sell-off is pressuring equities, though major indices recovered most losses on Thursday with the Nasdaq ending flat. The Treasury's $4.1 billion buyback fell short of its $6 billion limit, and a seven-year auction saw weak demand at a record 5.085% yield. JPMorgan analysts see further upside in yields due to energy-driven inflation, heavy government borrowing, and potential Fed tightening. Geopolitical tensions persist with conflicting reports on US-Iran talks and Houthi attacks on Saudi facilities, keeping Brent crude around $105-106. The 30-year fixed mortgage rate jumped to 7.45%, up from 5.99% pre-war, adding to economic headwinds. This follows the Fed's rate hike on September 16 and a series of volatile sessions driven by Middle East escalation and oil price swings.
At the time of this announcement, IXIC was trading at $26,939.37 on NASDAQ in the Finance sector. The 52-week trading range was $20,690.25 to $27,288.79. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: CNBC TV18.