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U.S. 10-year yield tops 3% for first time in over three years

Fed seen announcing 0.5-point rate hike at this week's meeting

The Federal Reserve Board building in Washington. Ten-year yields have risen in past months in anticipation for quantitative easing by the U.S. central bank.   © Reuters

NEW YORK (Reuters) -- The U.S. benchmark 10-year Treasury yield on Monday hit 3% for the first time since December 2018, a psychological milestone that could have major implications for other financial markets.

The 10-year yield is an important barometer for mortgage rates and other financial instruments. It has surged the last two months as the bond market prepared for the Federal Reserve to start reducing its balance sheet, which ballooned to nearly $9 trillion as the central bank bought bonds during the pandemic.

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