The key rate in the U.S. rises to 4.8%, its highest level since 2023

WHAT HAPPENED

The U.S. 10-year Treasury bond reached 4.86% and closed near 4.8%, its highest level since late 2023. The market now sees a 59% probability of another rate hike from the Fed.

WHY IT MATTERS

Inflation remains high, oil makes gasoline and transportation more expensive, and the U.S. created 162,000 jobs in August, much more than expected. That's why mortgage, auto, and credit rates are rising, and credit is cooling.

AND FOR YOUR PORTFOLIO

For those saving in dollars or holding instruments tied to U.S. debt, the yield may be higher. For those using credit in the country, borrowing costs more. A stronger dollar may also make dollar purchases more expensive for those using pesos.