During Wednesday’s European session US equity futures labeled as Treasury yields
rose; the 10-year climbed above 5.30% and the 30-year traded near 5.69%. Market
participants point to persistent inflation risks, a widening fiscal deficit and
a large pickup in AI-linked bond issuance as key factors keeping yields
elevated. Escalating Middle East tensions have pushed crude prices higher,
adding inflationary pressure and supporting tighter rate expectations, although
Softer recent US jobs data has reduced odds of aggressive Fed tightening.
Traders assign roughly a 22% probability of a rate hike at the October meeting,
according to the CME FedWatch tool.
