US Treasurys are lower for a sixth consecutive session as sellers pile on following Friday’s jobs report. The selling has yields up more than 3 basis points at the long end of the curve, running the 30-year yield to its highest point since the UK’s Brexit vote.
Here’s a look at the scoreboard as of 12:01 p.m. ET:
- 2-year +0.5 bps @ 0.854%
- 3-year +0.9 bps @ 0.997%
- 5-year +1.0 bps @ 1.288%
- 7-year +1.2 bps @ 1.579%
- 10-year +2.0 bps @ 1.757%
- 30-year +3.8 bps @ 2.492%
Since bottoming in early July, US Treasury yields has seen a steady climb as traders increase bets that a Federal Reserve interest rate hike will come before the end of 2016. Currently, the market is pricing in a 17.1% chance of a November rate hike and a 67.6% probability that the Fed will lift rates before the end of the year, according to Bloomberg data. By comparison, on July 11, about two weeks after the Brexit vote, there was just a 20.6% chance the Fed’s next rate hike would occur this year.
Selling since the 30-year bottomed at a record low 2.098% on July 8 has run the 30-year yield up about 40 basis points to 2.492%.