10-year Treasury yield rises to highest since 2007 as Fed rate-hike expectations rise

The benchmark 10-year Treasury yield climbed to its highest levels in 19 years on Tuesday as oil prices surge from the Iran conflict and expectations grow that the Federal Reserve will raise interest rates on Wednesday. The rate milestone could ripple through the economy as the 10-year yield is a benchmark for consumers loans and corporate funding.

The 10-year yield was last up more than 3 basis points to 4.996%. Earlier in the session, it scaled to 5.041%, the highest since July 2007. One basis point equals 0.01 percentage point, and yields and prices move in opposite directions.

Yields on the U.S. 10-year Treasury The yield on the longer-dated 30-year Treasury bond , more sensitive to geopolitical risks, rose more than 3 basis points to 5.364%. The yield had hit a high of 5.401% — also its highest level since June 2007.