The interest rate on the 10-year US loan exceeded 4% on the debt market on Wednesday, the highest since October 2008, continuing to soar under pressure from central bank policies.
At 07:14 GMT, the US 10-year rate reached 4.015%, exceeding the 4% mark for the first time since 2010 and reaching its highest since October 2008. Around 08:40 GMT, it was down to 3.99%. At the start of the year, it was hovering around 1.5%.
After years of low rates, the American benchmark loan crossed thresholds at a very brutal speed not seen on the markets since the 1990s. .5% mid-September penalty.
The 2-year borrowing rate had exceeded this threshold a week ago, and is also moving from the highest for 15 years (4.23%, highest 4.345% on Monday). It is therefore higher than the 10-year rate, a sign perceived by investors as a harbinger of a recession.
Rates soar in 2022 in response to central bank policies. The US Federal Reserve’s main policy rate went from just above 0% at the start of the year to more than 3% at its last meeting on September 21, the Fed showing its determination to fight inflation at all costs . This peaked above 9% in June, in the United States, and was still 8.3% in August.
Since the last meeting, several Fed officials, such as the president of the Saint-Louis branch James Bullard, have insisted on the need to continue raising the key rate, even if it means causing a recession. Analysts now see the key rate peaking at around 4.5% in the coming months.
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US Treasury Secretary Janet Yellen also said Tuesday that the monetary tightening led by the US central bank (Fed) did not cause disorder in the financial markets, while ensuring to monitor developments carefully.
This determination by the Fed also has effects on the currency market, where the dollar has hit in recent days its highest for 10 years against the yuan, 20 years against the euro, 24 years against the yen and an absolute record against the British pound.