US' 10-year US Treasury yield soars to 16-year high

By Ovunc Kutlu

ISTANBUL (AA) - The 10-year US Treasury yield soared Tuesday to its highest level in more than 16 years.

The yield on 10-year Treasury climbed to as high as 4.763% at 10.15 a.m. EDT, its highest since August 2007.

The measure, which plays a role in investor confidence and mortgage rates, was up 1.54% for the day.

The yield soared in September as investors anticipate the US Federal Reserve's monetary tightening policy to last longer than previously expected.

They also fear that high interest rates could push the American economy into a recession.

The central bank made 11 rate hikes since March 2022 to tame record inflation that climbed to its highest in more than 40 years last summer.

Although the bank skipped an interest rate increase on two occasions this year, it expects another hike in one of its two remaining meetings in 2023, while indicating fewer rate cuts next year, according to projection materials released last month.