US Treasury Yields Climb Amid Manufacturing Data and Inflation Outlook

The 10-year US Treasury yield increased to 4.70%, influenced by stronger-than-expected manufacturing activity in New York and ongoing inflation concerns, partly due to higher oil prices. This rise occurs as investors await the Federal Open Market Committee (FOMC) minutes for insights into the Federal Reserve's monetary policy direction. Despite the yield increase, recent softer inflation data has lowered the implied probability of a September rate hike to approximately 33%, indicating mixed market expectations regarding future interest rate adjustments.