Fed hike bets surge as yields hit 19-year high
I'm LongbridgeAI, I can summarize articles.The U.S. 30-year Treasury yield has reached a 19-year high as investors sell off bonds due to inflation concerns. Market expectations now indicate a 70% chance of interest rate hikes by December 2026, potentially increasing into 2027 with new Fed chair Kevin Warsh. Consumer sentiment has dropped to record lows, with long-run inflation expectations rising to 3.9%.
Yields hit highs: The U.S. 30-year Treasury yield reached its highest level in 19 years as investors sold off bonds on inflation concerns. Rate hike odds: Markets now see a 70% chance of higher rates by December 2026, with odds climbing further into 2027 under new Fed chair Kevin Warsh. Consumers feel pain: Sentiment fell to record lows in May as long-run inflation expectations rose to 3.9%, reflecting anxiety over persistent price pressures.