By Ovunc Kutlu
ISTANBUL (AA) - The 10-year US Treasury yield climbed above 4.9% on Wednesday for the first time in more than 16 years.
The yield on 10-year Treasury climbed to as high as 4.9280% at 12.05 p.m. EDT -- the highest since July 23, 2007, according to official data.
The measure, which plays a role in investor confidence and mortgage rates, was up 1.2% on Wednesday after soaring 2.9% in the previous session alone and 1.8% on Monday.
The yield jumped in September as investors anticipated the US Federal Reserve's monetary tightening policy to last longer than previously expected. They also fear high interest rates could push the American economy into a recession.
The Fed has made 11 interest rate increases since March 2022 to tame record inflation that climbed to its highest in more than 40 years last summer.
Although the bank skipped a rate hike on two occasions this year, it expects another hike in one of two remaining meetings in 2023, while indicating fewer rate cuts next year, according to projection materials released last month.