The yield on the US 10-year Treasury note touched 3 per cent for the first time in more than three years on Monday, as traders prepared for the Federal Reserve to raise interest rates again at a time of soaring inflation and slowing growth.
The yield on the government bond has profound effects on the economy, feeding into home mortgage rates and borrowing costs for companies. The higher yield, which rises when bond prices fall, is tightening financial conditions after two years of the coronavirus pandemic.
The US 10-year yield edged just above 3 per cent in early afternoon trading in New York, according to Bloomberg data — double its level at the start of the year and the highest since December 2018. It later dipped back to 2.99 per cent, up 0.05 percentage points on the day.