The yield on the 10-year US Treasury note rose to around 5.2% on Monday, staying at its highest level since July 2007 as expectations strengthened that the Federal Reserve will tighten monetary policy further to contain inflation. Data released Friday showed new orders for key US manufactured capital goods rose more than anticipated in August, pointing to another quarter of solid growth in business spending. The University of Michigan’s consumer sentiment survey also confirmed a sharp increase in inflation expectations in September. Markets are currently pricing in roughly a 66% probability of a Fed rate hike in October. Investors now await the Fed’s preferred inflation gauge and key US jobs data this week for additional guidance. Adding to concerns, Treasury Secretary Bessent’s efforts to contain long-term yields through increased Treasury buybacks are widely viewed as having had limited effect.