The yield on 10-year US Treasuries has risen above 5% again after the release of strong business activity (PMI) data that exceeded forecasts.

Business activity at fastest pace since July 2021, employment at over four-year high

September figures indicate the fastest growth in business activity since July 2021, while employment is increasing at the highest rate in more than four years; companies are also reporting rising costs. These signals give the Fed more grounds to consider another rate hike.

Rising yields increase pressure on risk assets

For risk assets, higher Treasury yields are typically negative: government bonds become more attractive, borrowing costs rise, and demand for risk declines—including for stocks and cryptocurrencies.

US Treasury to raise buyback limit to $6 billion on September 24

The market could find support as the US Treasury increases the buyback limit for long-term government bonds to $6 billion for the upcoming operation on September 24; additional demand may support bond prices and lower yields, easing pressure on risk assets. Details are provided in the pre-announcement of the operation.