10-Year Treasury Yield Returns to 5% as Markets Price Possible Fed Hikes

Treasury yields moved higher on Friday, with the 10-year yield rising about 5 basis points to roughly 5.00%, the 2-year climbing to 4.69% and the 30-year reaching 5.33%. The move reversed part of the prior session's decline.

The Federal Reserve is widely expected to hold rates steady at its meeting next Wednesday after raising them at its last gathering. Some economists, including BMO's Douglas Porter, expect further increases in December and March. September PCE inflation, due soon, is forecast to show an annual rate near 3.7%.

Higher yields raise borrowing costs for consumers and companies and tend to pressure rate-sensitive areas such as real estate and highly leveraged firms.