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10-year Treasury yield rises one basis point to 5.124%, after reaching a 19-year high on Wednesday
- Several factors boosted Treasury yields, including stronger-than-expected U.S. economic activity, hawkish comments from a Federal Reserve official and elevated oil prices.
- Fed Governor Michael Barr said Wednesday that further policy changes will likely be needed to bring inflation back to the Fed’s target.
- S&P Global data showed U.S. services PMI rose to 58.7 in September, its highest in nearly five years, while manufacturing PMI climbed to 56.7, the strongest level in more than four years.
- The PMI data strengthened expectations for further rate hikes, with traders pricing in a 70% probability of another Fed increase at its October meeting, according to CME’s FedWatch tool.