Treasury yields climb to 2007-era highs as Fed hike bets rise

U.S. Treasury yields moved higher, with the 10-year yield near 5.025%, its highest level since 2007, as traders increasingly price in a 25-basis-point Fed rate hike at the upcoming meeting. The 30-year yield rose above 5.38% and the 2-year yield climbed to about 4.68%, with inflation remaining above the Fed’s 2% target and oil prices reinforcing inflation expectations. Analysts note a tight correlation between oil and Treasuries, suggesting further pressure on yields if crude stays firm as markets await the Fed decision.