Topline
Government bond yields touched their highest levels since mid-summer Tuesday as the bond market furthered its surprising move after the Federal Reserve’s rate cut last month – and the November election may put further pressure on bonds.
Donald Trump, left, and Federal Reserve Chairman Jerome Powell in 2017.
Key Facts
Yields for the benchmark 10-year U.S. Treasury note rose above 4.2% for the first time since July 26 in morning trading, while the 2-year government bond yield hit its highest level since Aug. 20 at 4.06%, according to CNBC data.
That caps a borderline stunning rise in bond yields after the Fed slashed its target federal funds rate by 0.5 percentage points Sept. 18, as Treasuries serve as a proxy for the market’s expectations for monetary policy, meaning investors now anticipate higher interest rates in coming years than they did before the Fed dramatically lowered rates.
