US Treasury Yields Rise 3-4bps on Google Bond Sale and Fed Hike Fears

Google's 10-part bond offering and reports of potential September rate hikes pushed US Treasury yields up 3-4 basis points, with long-end bonds leading the decline.

Woofun AI data shows that US Treasury yields increased by 3 to 4 basis points across the board during early New York trading, driven by supply pressure and monetary policy concerns. Google announced a 10-part bond issuance spanning maturities from 2 to 40 years, which weighed on the long end of the yield curve and pushed the 2s10s and 5s30s spreads to intraday highs.

Simultaneously, reports indicated that Fed Chair Kevin Warsh "would be prepared to raise rates at the September meeting" if inflation data remains elevated in the coming weeks. This sentiment lifted short-term yields, causing the 2s10s and 5s30s curves to steepen by approximately 1 basis point to their widest levels of the day. The 10-year Treasury yield reached roughly 4.65%, marking a 3.5 basis point daily increase. Rate markets currently price in about 15 basis points of hike probability for September, with cumulative expectations of 33 basis points by year-end.