Treasury Yields Break 5% as Fed Hike Bets Surge | September 16 2026 - 동영상 Dailymotion

Seoul Economic Daily

US 10-year yields just hit their highest level since 2007, and the Fed may follow. Oil-driven inflation fears pushed Treasury yields above 5% intraday, with markets now pricing a 94.5% chance of a Fed hike this week. Korean investors are already rotating into short-duration US Treasury ETFs, while Seoul and Washington negotiate Korea's equity stake in nuclear giant Westinghouse. Rare-earth supply risk adds another layer to Korea's global exposure this week.  Sources: - US 10-year Treasury yield breaks 5% as Fed rate-hike bets intensify — Seoul Economic Daily, Sept 15, 2026 - Economists see Fed rate hike this week after hot inflation data — Seoul Economic Daily, Sept 15, 2026 - Korea, US negotiate Westinghouse equity stake and board rights — Seoul Economic Daily, Sept 15, 2026 - Korean investors flock to US short-term Treasury ETFs — Seoul Economic Daily, Sept 15, 2026 - China's rare-earth controls loom as Korea searches for domestic reserves — Seoul Economic Daily, Sept 15, 2026  About AI PRISM: AI PRISM is Seoul Economic Daily's WAN-IFRA award-winning newsroom AI series, delivering Korean economic news adapted for global audiences. Episodes are produced with AI assistance and reviewed by a human editor.

Transcript

00:02You're listening to AI Prism from Seoul Economic Daily.

00:30Oil prices surged after Saudi Arabia's alternate crude route was shut down, reviving inflation

00:35fears across global bond markets.

00:37August's core CPI rose 0.3% month-on-month, hotter than the 0.2% forecast.

00:44Economists surveyed by Reuters flipped from expecting a hold to pricing an 85% chance

00:50of a September hike.

00:51Here's what the numbers show.

00:53The 10-year Treasury yield hit 5.039% intraday Monday, up 7 basis points, before

00:59easing to close at 4.961%, the highest close since 2007.

01:05The CME FedWatch tool raised the odds of a 25 basis point September hike to 94.5%, up

01:12from 87.3% a day earlier.

01:15A hike would lift the federal funds rate to 3.75% to 4.00%, the first increase since July

01:232023, effective this week.

01:25Japan's policy rate is also seen rising this week, with odds above 90% ahead of the

01:31September 17-18 BOJ meeting, the first joint U.S.-Japan hike since 2006.

01:37Korean investors poured $294.5 billion, or about $218 million, into the U.S. short-duration

01:46treasury ETFS-GOV over the past month, the second-largest inflow after Alphabet shares.

01:53Seoul and Washington are negotiating Korea's equity stake in Westinghouse below the initially

01:58floated 20%, with voting rights the sticking point.

02:02Korea's dependence on Chinese rare earth components climbed above 90% last year, even

02:08as raw material import reliance eased to about 50% in 2025.

02:13So what does this mean for global investors?

02:15Earlier, we said Treasury yields broke 5%.

02:19Here's what that actually means for you.

02:21Rising U.S. yields widen rate spread pressure on Korean sovereign bonds and could accelerate

02:26foreign outflows from COSPI if the one weakens further.

02:29The Westinghouse stake deal, expected around September 18, will shape how exposed Korean

02:35utilities and materials firms are to U.S. nuclear supply chains.

02:39What to watch?

02:41The FOMC decision, due September 15-16, the BOJ meeting on September 17-18, and the Korea-U.S.

02:50Westinghouse investment agreement, expected to be signed around September 18.

02:54That's today's AI Prism, Global Investors.

02:57This episode was produced with AI assistance based on Seoul Economic Daily reporting and

03:03reviewed by a human editor.

03:05AI Prism is a WANIFRA award-winning series.

03:07We'll be back tomorrow.

03:09You've been listening to AI Prism, from Seoul Economic Daily.

Treasury Yields Break 5% as Fed Hike Bets Surge | September 16 2026

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