US 10-year treasury yield rises amid Trump policy outlook

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The US 10-year Treasury note yield climbed above 4.36% on the week's first trading day, approaching the four-month high of 4.44% seen shortly after the US election.

US 10-year treasury yield rises amid Trump policy outlook

Investors remained focused on the potential impact of President-elect Donald Trump’s policies on the economy. The rise in yields reflected a shift from safe-haven assets to riskier investments, fueled by expectations of expansionary fiscal policies and Trump’s tech and crypto-friendly stance. Additionally, the possibility of aggressive tariffs raised concerns over inflation, leading to a hawkish Federal Reserve outlook, pushing yields higher across all maturities.

Market expects Fed to cut rates to 4% next year, up from 3%

As a result, funds futures now suggest that the market anticipates the Fed will continue cutting rates to a terminal rate of 4% next year, up from the previous expectation of 3%.