Bond Market Pushes Back on Rate Cuts as 10-Year Yield Hits 4.36%
- 10-yr US Treasury yield hits 1-mo high (4.36%) amid tariff hike, inflation fears
- Yield surge challenges Fed rate cut hopes; foreign buying concerns (China) mount
- Context: Bond market reprices risks (tariffs, supply, demand) vs prior rate optimism
Renewed US-China trade tensions under the Trump administration, dubbed by some as “Tariff War 2.0,” coincided with a sharp rise in the benchmark 10-year U.S. Treasury yield this week. The yield climbed to 4.36%, reportedly jumping significantly in just two days to reach its highest level in over a month.
The spike suggests increased borrowing costs and growing investor unease regarding inflation and the large supply of government debt hitting the market.
Why Are Yields Suddenly Rising?
The yield surge also marks a shift in investor sentiment after weeks of relative calm in the bond market. Stubborn inflation fueled bets on the Federal Reserve keeping rates higher for longer, contributing to upward pressure on yields.
Traders are now reassessing the timeline for potential Fed rate cuts, which had been aggressively priced in just weeks ago.
Related: ‘Ignore China At Your Peril’: Ben Zhou Flags Yuan De…
The post Bond Market Pushes Back on Rate Cuts as 10-Year Yield Hits 4.36% appeared first on Coin Edition.
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Bond Market Pushes Back on Rate Cuts as 10-Year Yield Hits 4.36%
- 10-yr US Treasury yield hits 1-mo high (4.36%) amid tariff hike, inflation fears
- Yield surge challenges Fed rate cut hopes; foreign buying concerns (China) mount
- Context: Bond market reprices risks (tariffs, supply, demand) vs prior rate optimism
Renewed US-China trade tensions under the Trump administration, dubbed by some as “Tariff War 2.0,” coincided with a sharp rise in the benchmark 10-year U.S. Treasury yield this week. The yield climbed to 4.36%, reportedly jumping significantly in just two days to reach its highest level in over a month.
The spike suggests increased borrowing costs and growing investor unease regarding inflation and the large supply of government debt hitting the market.
Why Are Yields Suddenly Rising?
The yield surge also marks a shift in investor sentiment after weeks of relative calm in the bond market. Stubborn inflation fueled bets on the Federal Reserve keeping rates higher for longer, contributing to upward pressure on yields.
Traders are now reassessing the timeline for potential Fed rate cuts, which had been aggressively priced in just weeks ago.
Related: ‘Ignore China At Your Peril’: Ben Zhou Flags Yuan De…
The post Bond Market Pushes Back on Rate Cuts as 10-Year Yield Hits 4.36% appeared first on Coin Edition.
Read More
POL Rally Gains Strength After Breakout, Traders Eye $0.24 and Beyond