U.S. Treasury Yields Fluctuate; 10-Year Hits 4.73%, 5% Anticipated Amid Inflation Concerns

U.S. Treasury yields have been experiencing fluctuations amid growing concerns over inflation and economic growth. The 10-year Treasury yield, after reaching 4.67%, rose further to 4.73%, marking its highest level since November 1, 2023. This increase comes in the context of slowing U.S. economic growth and rising inflation as reported by the Commerce Department. Investors are now bracing for the possibility of the yield reaching or surpassing the 16-year high of 5% witnessed last October. The anticipation of these movements is largely driven by expectations of persistent inflationary pressures, highlighted by recent U.S. economic data indicating sticky price pressures in the first quarter. With just one interest rate cut now expected in 2024, discussions of more rate hikes have resumed.