On Wednesday, U.S. Treasury yields rose, with the 10-year note reaching 4.4768%, up more than 2 basis points, and the 2-year note at 4.0700%, also nearly 2 basis points higher. The 30-year Treasury yield increased by 1 basis point to 4.9836%.
This uptick follows a period of declining borrowing costs, indicating a shift in investor sentiment as they await key economic indicators, including the Institute for Supply Management's services PMI for May. Recent employment data showed job openings surged to 7.618 million, the highest since November 2024, which may influence future Federal Reserve decisions.
Additionally, rising energy prices, with West Texas Intermediate crude up 2.3% to $95.94 a barrel, reflect ongoing geopolitical instability, particularly following renewed missile exchanges between U.S. and Iranian forces.
As mortgage rates have also increased to 6.65%, up from 6.56% the previous week, these developments could lead to higher borrowing costs for consumers, impacting the housing market and overall economic activity