10-year Treasury yield climbs back to 5% after Fed hikes rates, Warsh highlights inflation risks

The 10-year yield moved above the 5% mark after a Federal Reserve rate increase and comments from Chairman Kevin Warsh highlighting persistent inflation risks.

10-year Treasury yield climbs back to 5% after Fed hikes rates, Warsh highlights inflation risks

TL;DR

  • The 10-year Treasury note yield exceeded 5% after a Federal Reserve rate hike.
  • Fed Chairman Kevin Warsh highlighted persistent inflation risks.
  • The Federal Reserve raised its overnight lending rate to a 3.75%-4% range, the first increase in three years.
  • The rate hike aims to support the Fed's 2% inflation goal.
  • Rising oil prices, linked to the U.S.-Iran conflict, have contributed to inflation concerns.
  • Goldman Sachs Asset Management anticipates one more rate hike this year, contingent on inflation and energy prices.