Arabic version: عائد سندات الخزانة لأجل 10 سنوات يبلغ أعلى مستوى منذ 2002

According to Cnbc, U.S. Treasury yields climbed on Wednesday as traders prepared for a $39 billion auction of 10-year notes. The benchmark 10-year yield rose nearly 8 basis points to 5.35%, its highest level since 2002, while the 30-year bond yield gained 8.3 basis points to 5.724%, a 24-year high.

The 2-year Treasury note yield increased 2.7 basis points to 4.818%. A basis point equals 0.01%, and bond yields move in the opposite direction of prices. The 10-year sale is set to test whether current yields are sufficient to attract buyers or whether investors will seek a bigger premium because of concerns over inflation, debt levels and term risk. Results are due at 1 p.m. ET.

The auction is the second of three Treasury Department sales scheduled this week. The government sold $58 billion in 3-year notes on Tuesday and plans to sell $22 billion in 30-year bonds on Thursday. BMO Head of U.S. Rates Strategy Ian Lyngen said Tuesday’s 3-year auction was encouraging, adding that the 10-year supply would be more important in setting the tone for U.S. rates.

Treasury also plans a buyback operation on Thursday targeting maturities between 20 and 30 years. The liquidity-support operation will be at least $4 billion, double the normal size. The 10-year yield has risen 60 basis points since the end of July, while U.S. crude prices have climbed 20% over that period. Selling pressure has also appeared overseas, with French and U.K. 10-year yields rising.

Markets were also awaiting the release of Federal Open Market Committee meeting minutes at 2 p.m. ET for potential indications on monetary-policy decision-making. At its September meeting, the Federal Reserve raised interest rates for the first time since 2023. The New York Fed was scheduled to release its monthly consumer-expectations survey at 11 a.m., including inflation outlooks for one-, three- and five-year horizons.