10-Year Treasury Yield Hits 5.025% Amid Fed Rate-Hike Expectations

The 10-year Treasury yield increased by over 6 basis points to 5.025% as of 1.10 a.m. ET, marking its highest level since 2007. This rise follows a sell-off in U.S. government debt and comes ahead of the Federal Reserve's two-day policy meeting. Traders are pricing in a more than 92% chance of a quarter-point rate hike following August’s inflation far above the Fed's 2% target. The increase in yields affects markets as higher rates typically dampen borrower demand and can lead to lower equity prices.