The 10-year hits 5.1%, its highest since 2007

Higher base rate hits rollovers

On 25 September, the benchmark 10-year US Treasury yield surged to 5.104 per cent, crossing its highest level since the eve of the global financial crisis in the summer of 2007. The milestone was triggered by an exceptionally weak, disastrous $70 billion five-year Treasury note auction that tailed heavily, confirming that primary dealer balance sheets have …