The yield on the 10-year US Treasury note rose to approximately 4.27% on Monday, reaching its highest point in three months as expectations grew that the Federal Reserve will take a more cautious stance on further rate cuts, likely favoring modest reductions of 25 basis points in upcoming meetings.
10-year treasury yield hits three-month high
This sentiment followed stronger-than-expected US economic data and hawkish remarks from central bank officials. Additionally, speculation that former President Donald Trump may win the November 5 election bolstered Treasury yields, as his inflationary policies, including higher tariffs and lower taxes, are anticipated to impact the economy.
Rising yields fueled by deficit concerns; investors await key economic data
Concerns regarding a widening deficit due to expected increases in government spending further contributed to the rise in yields. Investors await additional US economic data this week, including JOLTs Job Openings, a preliminary GDP reading, the PCE price index, and PMI reports for further insights.
