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Fed Hawks Push 10-Year US Yield Above 5 Percent

By Markets Desk · 2026-09-17 · Updated 2026-09-17 02:32 UTC
A stack of foreign currency banknotes resting on a wooden desk next to a globe
Illustration: Tradingbird

Following the Fed's 25bp rate hike to 3.75%-4.00% and the 10-year yield breaking 5%, Asian sovereign bonds are sliding as the two-year US note hits a 2024 high of 4.74%. With the yen remaining weak at 156.20 and traders pricing in a 50% chance of further tightening in October, the dollar continues to strengthen against global peers.

  • New data from GN markets/rates (en-US) shows the two-year US note yield climbing to 4.74%, its highest level since 2024, which has dragged down Australian and New Zealand sovereign bonds. Money markets are currently pricing in a 50% probability of an additional rate hike as early as October, reflecting Fed Chair Kevin Warsh's hawkish stance that the recent move removed a dose of accommodation.

    Source: straitstimes.com

  • The Federal Reserve raised rates by 25bp to 3.75%-4.00%. The 10-year Treasury yield exceeded 5%. The DXY index recovered 100. Asian currencies face pressure.

    Source: MUFG Research
Based on reporting by MUFG Research and straitstimes.com, compiled by the Tradingbird desk.

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