Warsh faces credibility test as markets price in another Fed hike and Treasury yields surge

• —CME FedWatch shows over 75% odds of a 25bps hike at the October FOMC meeting
• —10-year Treasury yields topped 5.1%, 30-year exceeded 5.4%
• —A weak $70bn 5-year auction cleared at 5.03%, above the pre-sale yield
• —Brent crude briefly hit $108 a barrel amid US-Iran negotiations