The US 10-year Treasury yield surged to a new 19-year high Wednesday, as more hot economic readings boosted expectations of further interest rate increases.
The latest manufacturing data underscored the boom in US business activity and showed the “greatest recorded [increase] since early 2015,” an economist said, noting that input costs — mostly fuel and transportation — also jumped at the steepest rate in four years. Oil ticked higher after Iran’s president delivered a defiant speech at the UN, stirring inflation fears.
Odds of another rate increase at next month’s US Federal Reserve meeting approached 70%, as one Fed governor said Wednesday that further tightening would be required to tame inflation.
