Ten-year US Treasury yield hits 5%

LONDON, Oct 23 – The yield on the benchmark 10-year US Treasury note rose above 5.0% on Monday, hitting the July 2007 milestone that it briefly attempted to scale last week.

The run-up in yields on the 10-year Treasury bond, seen as a safe-haven in times of economic uncertainty and a benchmark for borrowing costs around the world, has been driven by investors pricing in stronger US growth as well as fiscal slippage.

Yields at the long-end rose quickly after Federal Reserve Chair Jerome Powell said last week that the US economy’s strength and hot labour market might warrant tighter financial conditions.

The 10-year yield was briefly bid at a 16-year high of 5.001% on Thursday. It has risen 160 basis points since mid-May.

(Reporting by global markets team; Editing by Neil Fullick)