The 10-year Treasury yield reached a 14-month high of 4.79% on Friday, driven by investors’ concerns over inflation. The jump followed a hotter-than-expected jobs report that saw nonfarm payrolls grow by 256,000 in December. This upward trend is also being fueled by traders’ expectations that the US Federal Reserve will take a cautious approach to interest rate cuts this year.
Global bond yields are rising as investors anticipate slower rate cuts due to President-elect Donald Trump’s policies. The yield on the 2-year Treasury fell slightly to 4.392%, contrasting with the higher 10-year Treasury yield. This uptick in US bond yields is a sign of overall market shifts, reflecting growing fears about inflation.
As investors wait for key inflation prints next week, including the producer price index report on Tuesday and the consumer price index on Wednesday, they remain vigilant for any changes in interest rates or economic trends.
Source: https://www.cnbc.com/2025/01/13/10-year-treasury-yield-rises-ahead-of-inflation-prints.html