US Treasury markets faced renewed selling pressure as investors adjusted to expectations of tighter Federal Reserve policy and growing government debt supply. Yields climbed across the curve, pushing borrowing costs higher and increasing volatility across financial markets.

Record diesel prices are increasing pressure on US farmers, trucking companies and other fuel-intensive industries, prompting debate over whether restricting exports could help ease domestic costs.

Stronger US economic data has pushed monetary policy expectations firmly back toward further tightening on September 24. S&P Global’s flash Composite PMI rose to its highest level since July 2021, while input-price pressures accelerated sharply. Fed Governor Michael Barr also signaled that additional policy adjustments may be needed, lifting the implied probability of an October rate hike to around 70%. Treasury yields rose alongside these expectations, strengthening the dollar.