Economy / Markets
30-year US Treasury yield closes above 5.32% — highest since 2007 — as FOMC Sept hike prices to ~90%
The 30-year US Treasury yield closed above 5.32% on Friday — its highest level since 2007 — after peaking at 5.37% intraday as markets priced a near-90% probability of a 25 bp Fed hike at the September 15-16 FOMC meeting, up from about 70% before Friday's hot August CPI print. The bear-flattening was led by the front end widening as much as 25 bp on the week, with the 10-year yield closing above 4.90%. The repricing came even as the Treasury's expanded long-end buyback program began operations, an early sign that official support is smoothing rather than stopping the term-premium adjustment.