US Treasury yields surge amid market speculation over interest rate hikes

The Treasury yield in the United States surged to its highest point since December 2019 on Wednesday morning as the Federal Reserve will soon begin raising interest rates.

The yield on the benchmark 10-year Treasury note surged to 1.89 %. The 30-year Treasury bond yield advanced to 2.20%. Yields move in the opposite direction of prices, and one basis point equals 0.01 %.

Read more: Microsoft to buy game developer Activision for $69 billion in push for metaverse

The two-year Treasury yield, which represents expectations for short-term interest rates, also surpassed 1% for the first time in two years. On Wednesday morning, it stayed higher, hovering at 1.06 percent, CNBC reported. 

Meanwhile, some of the country's largest lenders reported higher earnings. Bank of America's profit rises 25 % which is higher-than-expected fourth-quarter earnings, while Morgan Stanley reported profit surges around 9%.

Read more: U.S. mortgage rates jump to the highest level since April 2020

Stock Futures

Dow Jones Industrial Average futures advanced 0.32 % on Wednesday. The S&P 500 futures climbed 0.40 %, while the Nasdaq futures jumped 0.56 %.

Oil Prices

Brent crude futures, the global oil benchmark increased 0.81 % to $88.22 a barrel. WTI Crude oil prices gained 0.95 % to $86.24 per barrel.

Read more: Tesla shareholders urge judge to make Musk pay $13B for SolarCity deal