The yield on 10-year US Treasury bonds rose above 5% for the first time since 2007. The weekly rise in the yield of these securities was the highest since the beginning of April. The yield increased by 9 basis points to 5.021% during trading on Monday. Last week, the yield of these bonds rose by almost 30 bps, despite a short-term decline on Friday caused by an increase in demand for safe haven assets amid the escalation of the conflict in the Middle East. The growth is associated with expectations that the Federal Reserve System FRS will keep the base rate at a high level for a long period, as well as with an increase in the issuance of government bonds by the US Treasury to cover the growing budget deficit. Fed Chairman Jerome Powell, speaking last week, hinted at the possibility of an additional increase in interest rates. And the US state budget deficit for the fiscal year 2023 increased by 23% to $1.695 trillion, which is the third largest deficit in US history. The yield of 30-year US Treasuries on Monday increased by 9 bps, reaching 5.183%.
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