Wall Street at midday: 10-year Treasury yield climbs back toward 5.22% as S&P and Nasdaq head for weekly gains

A global bond selloff resumed on Friday, pressuring early equity gains on Wall Street, the Wall Street Journal reports. The 10-year U.S. Treasury yield climbed back toward the week’s intraday high of 5.224%, rising in the final hour after University of Michigan consumer sentiment data came in slightly stronger than the preliminary reading — keeping inflation concerns front and center amid a potentially overheating economy.

Earlier on Friday, borrowing costs had pulled back as oil prices fell. The most active Brent crude contracts retreated after reports that U.S. and Iranian negotiators in New York are discussing a deal to reopen the Strait of Hormuz.

For the week as a whole, yields are set to close far higher than they started: the 10-year yield has risen about 0.17 percentage points this week and remains near its highest levels in 19 years.

Heading into Friday’s session, the S&P 500 was up 0.7% for the week and the Nasdaq 1.6%, while the Dow Jones had fallen 0.6% and was on track for a weekly loss — leaving the S&P and Nasdaq headed for weekly gains despite the historic bond turmoil.

The market is pricing in a better-than-even chance of another Federal Reserve interest rate hike in October.