🕒 Created

Scott Bessent's efforts to stabilize the government debt market faced challenges as 10-year Treasury yields approached 5%.

The 10-year U.S. Treasury note yield reached 4.97% on Friday, approaching its highest level in nearly two decades. This increase was driven by a global bond sell-off and a consumer price index report showing a 0.4% monthly rise in prices for goods and services in August.

Show the rest of this summary

The core annual inflation rate stood at 2.4%, which remains above the Federal Reserve's 2% goal. Scott Bessent attempted to steady the government debt market, but the 10-year yield's rise suggests his moves may have backfired. The 10-year yield influences mortgages, auto loans, and credit card debt. Trading in 30-day fed funds futures indicates an 86% probability that the Federal Reserve will raise interest rates by a quarter percentage point at its policy meeting next week. This meeting will conclude with a vote on the key interest rate, which currently stands at 3.50% to 3.75%. Oil prices saw a decline on Friday, with West Texas Intermediate futures settling at $100.05 per barrel.

Sources

Paywall and unreadable sources