by Wolf Richter
Wolf Street
The 10-year yield surged by 60 basis points in five weeks but may run out of steam by about right now.
The 10-year Treasury yield rose to 4.25% on Friday, up by 60 basis points from the day before the Fed’s monster rate cut (when the 10-year yield was 3.65%), and up by 5 basis points from a week ago. This 4.25% is a milestone of sorts.
The 10-year yield has now reached the highest point since July 25. What a three-month round trip! On July 25, longer-term yields began to speed up their decline as the bets on Fed rate cuts kept gaining momentum on less-than-hot labor market data and cooling inflation, and kept declining until the Fed actually cut by 50 basis points on September 18, at which moment, to the surprise of many, particularly in the home sales industry, longer-term yields headed higher, instead of dropping further.