US 10-year yield hits 5.349%, highest since April 2002; gold steady near $4,140

FXStreet reports the US 10-year Treasury yield rose about 7 bp to 5.349%, its highest since April 3, 2002, before easing to around 5.30%. The 30-year reached 5.703%, the highest since late May 2002. The earlier 5.26% figure is stale. Gold traded near $4,140 in early Asian trade.

Higher yields raise the opportunity cost of holding non-yielding gold and weigh on richly valued stocks. Traders price about a 22.7% chance of a Fed hike at the next meeting, and Fed's Logan said on Oct 1 that the target range may need to rise by an additional 50 bp or more.

Watch whether long-end yields turn lower in a sustained way; OCBC says gold is still waiting for yields to turn while the USD stays firm. Technical support for gold is seen near $4,100. Also follow Fed speakers and the December hike odds, which remain elevated.