Yields on U.S. Treasuries continued their upward trend last week, with the yield on the benchmark 10-year U.S. note trading at 4.21% —the highest level since July. Additionally, the U.S. 2-year note climbed to yields not seen since August, trading at 4.04% on Friday.

This sharp increase in bond yields follows the Fed’s recent 0.5 percentage point cut to the federal funds rate on September 18th, reflecting market expectations of higher interest rates in the coming years, despite the Fed’s recent rate reduction. Paul Tudor Jones commented on CNBC: “We’re going to go broke really quickly unless we get serious about dealing with our spending issues”.

Moreover, the election uncertainty is adding to the upward pressure on Treasury yields, as the results could set the stage for further federal borrowing increases, with both Harris and Trump proposing tax cuts and new federal programs that could increase spending while reducing income for the U.S. Government. This creates a scenario where the market perceives a significant risk of increased U.S. Treasury supply, pushing yields higher.

With ongoing volatility in the U.S. Treasury market and the potential for more ahead, it’s crucial to access the most accurate Treasury data from a reliable source. TraditionData offers comprehensive access to the U.S. Treasury Market, providing real-time streaming, hourly, and end-of-day data to ensure you’re making well-informed trading and investment decisions.

Get in touch with our global sales team to find out more; datasalesglobal@tradition.com

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