FX.co ★ US 10-Year Yield Steadies on Inflation Worries

The yield on the US 10-year Treasury note held near 5.12% on Wednesday, stabilizing after the previous session’s pullback, as rising oil prices reignited inflation worries and reinforced expectations of further interest rate hikes. Crude prices resumed their upward trend after a diplomat dismissed reports that a deal to resolve tensions between the US and Iran was imminent, while confirming that talks are still in progress. At the same time, the US Federal Reserve is widely expected to leave rates unchanged at next week’s meeting, though markets are still pricing in the possibility of a rate increase in December. Treasury yields had already climbed to multi-decade highs earlier this month amid a global bond selloff, driven by persistent energy-related inflation, growing government debt burdens, and worsening fiscal conditions in major economies.