The yield on the US 10-year Treasury note rises to 5.021% as the market bets on a 25 basis points rate hike by the Federal Reserve.

Yields on US Treasury bonds rose across all maturities during the Asian trading session, after the 10-year Treasury yield surpassed 5% on Monday for the first time since October 2023. Investors are awaiting the Federal Reserve’s interest rate decision on Wednesday, with market pricing in a 93% probability of a 25 basis point rate hike, according to data from the London Stock Exchange Group. ING rate strategists stated in a report: “Logically, higher rates should have calmed the long end, yet it has often been highly volatile instead.” According to Tradeweb data, the two-year Treasury yield rose by 4.4 basis points to 4.676%, while the 10-year Treasury yield climbed by 6.2 basis points to 5.021%.