Treasury yields are headed for their highest close since 2007.
Traders have raised yields ahead of the Federal Reserve’s interest rate decision on Wednesday. A rise in inflation worries investors that the central bank will keep rates steady, but leaves the door open for further hikes. Earlier on Monday, the rise pushed the 10-year yield above the 16-year high reached in August.
One reason for the rise in inflation: Rising oil prices, fueled by Saudi production cuts that have created a supply shortage. Brent-crude prices are at their highest in nearly a year.
A bumper week for central banks sees decisions from the Bank of England, Bank of Japan, Sweden’s Riksbank, Turkey’s central bank and more.
Futures point to muted early gains in US stocks After Friday’s tech-led sell-off.
Treasury yields rose. The 10-year note traded at a yield of 4.344%. If yields end the day above 4.339%, it will mark their highest level since 2007.
The most active Brent contracts rose 0.5% to $94.40 per barrel.
European stocks fellConstruction and tech stocks played catch-up with Wall Street’s Friday stupor.
Asian markets were mixed, with gains in mainland China and losses in Hong Kong. Japanese markets were closed.