LONDON: Yields on 10-year U.S. government bonds rose to their highest level since late 2007 on Friday, as Federal Reserve officials kept up their tough rhetoric on inflation.
The 10-year Treasury yield hit 4.291%, a level last seen in December 2007.
The yield was last up 5 basis points (bps) at 4.274%. It was on track for its biggest weekly gain since April, having risen 27 bps since Monday.
Philadelphia Fed President Patrick Harker said on Thursday that the central bank has not finished raising borrowing costs.
“We are going to keep raising rates for a while,” Harker said. “Given our frankly disappointing lack of progress on curtailing inflation, I expect we will be well above 4% by the end of the year,” he added.
The Fed has pushed up rates by 300 bps since March.
The 2-year Treasury yield was last down 1 bp at 4.605%, after hitting a 15-year high of 4.639% earlier in the session.
The yield on the 20-year Treasury was up 7 bps at 4.555%.