(Bloomberg). — Treasuries sold off, boosting the benchmark 10-year note’s yield to 3%. This is the highest level in three years.

Inflation pressures have been rising due to the conflict in Ukraine and pandemic-related supply chain issues. This has pushed up bond rates this fiscal year, which in turn have increased expectations of Federal Reserve policy tightening. Fed officials will meet next week to raise their overnight benchmark by 50 basis points. Additional increases are expected at subsequent meetings.

Monday’s yield of the 10-year security rose as high as 6.7 base points. It surpassed the mark of 3% for the first-time since December 2018 and topped 3%. The benchmark bond of 20 years was previously the first security to surpass 3% during the current rate rise cycle. In April, the five-year, seven-year and 30-year rates surpassed 3%.

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