22.12.202504:06:59UTC+00US 10-Year Yield Rises Further

On Monday, the yield on the US 10-year Treasury note increased to approximately 4.17%, continuing its rise from Friday due to a global surge in bond yields. This movement stems from the anticipated tighter monetary policies by major central banks worldwide. The yield on Japan's 10-year bond reached its highest level since 1999 following the Bank of Japan's decision to increase its policy rate last week, with indications of further rate hikes to come. Similarly, Australia's 10-year yield climbed to its highest point in over two years, driven by robust economic data that heightened expectations for a Reserve Bank rate hike next year. Investors are now anticipating the release of the preliminary estimate for third-quarter GDP on Tuesday, seeking additional insights into the economic climate and the potential timing of Federal Reserve rate reductions. At present, traders are factoring in the possibility of two rate cuts from the Federal Reserve next year, amid signs of decreasing inflation and a cooling labor market.