Treasury Yields Surge to 19-Year Highs on Hot Economic Data, Raising Fed Rate Hike Odds

The benchmark 10-year Treasury yield jumped to 5.058%, a 19-year high, following stronger-than-expected S&P Global services and manufacturing PMI data. Services PMI hit 58.7 (a nearly five-year high) and manufacturing PMI reached 56.7 (a four-year high), signaling a booming U.S. economy 🔗.

Fed Governor Michael Barr's comments on likely further rate hikes added to concerns. Odds of an October quarter-point rate increase have risen to 64% from 55% yesterday 🔗. This macro development could pressure equities and increase borrowing costs across the economy.