The 10-year Treasury yield reaches 5.23%, its highest level since 2007

The benchmark 10-year U.S. Treasury yield hit 5.23% on Friday, the highest since 2007, after trading just below 4.8% earlier in September; the rate guides mortgage pricing. CME FedWatch puts a 64% probability on an October Fed rate hike as yields reflect stubborn inflation, and Michigan’s September survey showed year-ahead inflation expectations at 4.6%, up from 4% in August. Macquarie’s Thierry Wizman said bond issuance, not inflation alone, has driven much of this year’s rise.