US 10-year Treasury yield nears 2007 peak, set for biggest monthly jump in 2 years

The US 10-year Treasury yield is hovering near its highest level since 2007, on track for its largest monthly increase in two years as global bond markets face sustained selling pressure. The benchmark yield stood near 5.230%, with September's rise of almost 50 basis points driven by heavy debt issuance and persistent energy inflation. Short-term yields saw even sharper monthly gains, reflecting growing market expectations that the Federal Reserve will hike rates again in October. European benchmark yields reached multi-decade highs, while Japanese 10-year yields rose over 40 basis points this quarter. Traders are now focused on the upcoming US PCE price index, with money markets pricing nearly a 70% chance of a quarter-point Fed rate hike next month.